MUFG’s Asia FX Weekly highlights that China’s July activity indicators, following weak Q2 GDP, will be central for the Chinese Yuan and regional FX. The authors stress ongoing weakness in fixed asset investment and property-sector challenges, and question whether domestic demand is stabilizing and whether PBOC will tolerate continued CNY strength. They also note PBOC has been guiding USD/CNY lower via its daily fixing.
China data and fixing steer CNY
“In China, attention will centre on July activity indicators, following a weak Q2 GDP print.”
“Fixed asset investment is likely to remain weak, underscoring ongoing challenges in the property…
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