Forex – Yuan Inches Down; All Eyes on China’s July Retail Sales, Industrial Output

Forex – Yuan Inches Down; All Eyes on China’s July Retail Sales, Industrial Output
imageForex6 minutes ago (Aug 13, 2019 01:16AM ET)

(C) Reuters. – The Chinese yuan inched down against the U.S. Dollar on Tuesday in Asia.

The USD/CNY pair was up 0.1% to 7.0630 by 1:13 AM ET (05:13 GMT).

On Tuesday, the People’s Bank of China lowered its official yuan midpoint for the ninth straight day to 7.0326 per dollar.

The yuan has become a focal point since last week when Beijing allowed the currency to fall below 7 per dollar, prompting Washington to officially label Beijing as a currency manipulator and further escalated the ongoing trade war between the two sides.

All eyes will be on Chinese figures on July retail sales and industrial output due Wednesday to gauge the impact of the long-running tussle with the United States on domestic activity.

Political unrest in Hong Kong which saw the city’s airport halting operations and Sino-U.S. trade concerns sent Asian stocks lower today. However, the Japanese yen, which is widely considered a safe-haven currency, also retreated today.

The USD/JPY pair last traded at 105.43, up 0.1%.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies was up 0.2% to 97.405. The U.S. Federal Reserve annual symposium at Jackson Hole later in the week will be in focus, as traders hope to get some clarity on the future path of interest rates.

The AUD/USD pair gained 0.2% even after a survey showed the Australia’s National Australia Bank’s index of business conditions was down 2 points to +2 in July.

“The decline in business conditions since early 2018 has been broad-based and has continued to track at below average levels in recent months,” said NAB group chief economist Alan Oster.

“This is concerning, because while conditions remain positive, it points to a significant loss in momentum in the business sector,” he noted.

The NZD/USD pair inched up 0.1%.

Forex – Yuan Inches Down; All Eyes on China’s July Retail Sales, Industrial Output

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