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the USDCNY exchange rate temporarily reached over 6 yuan
In response to the release of key economic indicators in China.
“the USDCNY exchange rate temporarily reached over 6 yuan”
The USDCNY exchange rate briefly touched the level of 6.96 yuan in response to the release of crucial economic indicators in China. The reported figures for China’s industrial production, retail sales, and real estate investment, unveiled at 11, fell short of market expectations, resulting in a notable selling pressure on the yuan. Consequently, the USDCNY exchange rate shifted from the mid 6.95 range to approximately 6.96. This downward trajectory also exerted an impact on resource based currencies that heavily rely on exports to China, notably the AUDUSD, which witnessed fluctuations around 0.6680, and the AUDJPY, reaching the range of 90.80 yen.
In the meantime, the USDJPY exhibited limited fluctuations in proximity to the significant threshold of 136 yen, with a narrow price range spanning from 135.91 to 136.12 yen during the morning session. Despite the immediate risks posed by the United States’ debt ceiling issue to the financial markets, there was minimal evidence of substantial volatility driven by risk averse yen buying or dollar buying. Regarding the matter of the debt ceiling, discussions between President Biden and Speaker McCarthy of the House of Representatives are scheduled to commence at 5:00 AM on the 17th, Japan time. The USDJPY recorded a new daily low at 135.72 yen, with a slightly prevailing trend of yen buying observed in the London market.
In the context of other currency pairs, the AUDJPY experienced a softening towards the vicinity of 90.83 yen, while the NZDJPY weakened to approximately 84.84 yen. The series of economic indicators released by China weighed on these currencies. The EURJPY softened towards approximately 147.77 yen, and the GBPJPY declined to around 170.16 yen, albeit with limited downward movement.
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