USD\/CNH bounced from a one-year-plus low as the PBOC set a higher-than-expected fixing, signaling managed support for yuan appreciation. A stronger Yuan could help China pivot towards consumer-led growth, while the USD\/CNH downtrend remains intact, BBH FX analysts report. <\/p>\n
PBOC fix supports Yuan appreciation<\/p>\n
“USD\/CNH is firmer near 7.0670, recovering from yesterday\u2019s one-year-plus low at 7.0540. The People\u2019s Bank of China (PBOC) is managing CNY appreciation expectations with a higher-than-forecast USD\/CNY fix. USD\/CNY fixing was set at 7.0733 vs. Bloomberg survey estimate of 7.0569. The gap between the fixing and forecast was the most positive (164pips) since February 2022.”<\/p>\n
“In our view, a continued appreciation in China\u2019s currency could help the country shift its growth model towards consumer spending by boosting disposable income through cheaper imports. In parallel, China can tolerate a stronger currency with limited damage to the manufacturing sector as the yuan remains deeply undervalued. Bottom line: USD\/CNH downtrend is intact.”<\/p>\n","protected":false},"excerpt":{"rendered":"USD\/CNH bounced from a one-year-plus low as the PBOC set a higher-than-expected fixing, signaling managed support for yuan…\n","protected":false},"author":2,"featured_media":167614,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-167613","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/167613","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=167613"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/167613\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/167614"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=167613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=167613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=167613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}