USDCNH Rebounds as China’s Retail Sales Surge

After reaching its lowest point in over three months, the offshore yuan rebounded to nearly 7.23 per dollar. This change occurred as traders responded to new economic data. On Friday, China reported that retail sales in October grew much more than the market had expected. This marks the fastest growth since February and indicates that support measures introduced by Beijing in late September have a positive effect.

Home Prices Fall Again Despite Beijing’s Efforts

Furthermore, the unemployment rate in October dropped to its lowest level in four months. Although industrial production did increase, it rose slower than anticipated and eased from September’s four-month high. Meanwhile, new home prices fell for the 16th consecutive month in October, experiencing the steepest decline since April 2015. This happened despite Beijing’s efforts to boost the struggling property market by cutting mortgage rates and reducing home-buying costs.

In addition, the central bank injected 981 billion yuan through seven-day reverse repurchase agreements. This move aimed to offset maturing medium-term lending facility loans and tax payments. It represents the largest single-day cash infusion since 2020.

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Ethan O. Miller

Ethan O. Miller is a seasoned Forex analyst. His insightful articles offer a unique perspective on currency trends, aiding both novice and experienced traders in navigating the Forex market.

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