Robust Renminbi Despite Falling Stocks And A Rising U.S. Dollar

www.investing.com/analysis/robust-renminbi-despite-falling-stocks-and-a-rising-us-dollar-200622346

By FxPro Financial Services Ltd (Alexander Kuptsikevich) | Apr 18, 2022 04:47AM ET

Saved. See Saved Items.

This article has already been saved in your Saved Items

HK50

-1.52%

Add to/Remove from Watchlist

USD/CNY

+0.03%

Add to/Remove from Watchlist

+0.02%

Add to/Remove from Watchlist

FTXIN9

-0.40%

Add to/Remove from Watchlist

FTXINH

+0.00%

Add to/Remove from Watchlist

USD/CNH

-0.08%

Add to/Remove from Watchlist

The Easter holiday in Europe and a lack of scheduled publications in the US ensure a quiet trading session this Monday. Only a batch of data from China provides some volatility.

China GDP increased by 4.2% YoY in Q1 22.

Chinese stocks were under moderate pressure on Monday, and the Chinese renminbi has changed little since the start of the day. As many expected, investors are concerned that the People's Bank of China did not ease its monetary policy on Friday or Monday. In addition, retail activity is declining – a worrying signal of the impact of lockdowns.

According to the released statistics package, the economy added 1.3% in the first quarter and is 4.8% higher than a year ago. This data is noticeably better than forecasts which expected 0.6% and 4.2%, respectively.

Sharp fall in China Retail Sales amid growing Industrial Production

Industrial production added 5% in March compared to the same month a year earlier, better than the 4.0% expected. However, the 3.5% y/y drop in retail sales in response to last month's tight lockdowns caught our attention. To a large extent, they persisted or even intensified in some regions in the first half of April.

At the same time, the resilience of the Chinese renminbi cannot be overlooked. In no small measure, its ability to withstand a strengthening dollar is due to its tighter monetary policy. China seems to be paying more attention to the dynamics of the currency and economic indicators, disregarding the stock market's weakness.

Key equity indices - FTSE China A50, Hang Seng, FTSE China H Share – are now below pre-pandemic levels, in stark contrast to the 8.5% rise in the Chinese yuan against the dollar near the bottom of the last six and a half years. The ability of the renminbi to withstand a rising dollar environment is a demonstration of the strength of the Chinese currency.

Should the dollar trend reverse and retreat from its highs, we could see a serious yuan rally from the current 6.38 with a potential renewal of the 2018 USD/CNH lows at 6.25 or even 2015 when the pair traded below 6.20.

US Dollar Picks Up Momentum Ahead of Key Macro Events: What to Watch... By Fawad Razaqzada - Dec 06, 2023 1

The EUR/USD faces a key test in the next week and a half. We will have lots of key data and rate decisions from both the Federal Reserve and European Central Bank to come during...

USD/JPY: Triangle Breakout Likely By Scott Barkley - Dec 06, 2023

Bearish: We are currently @ 147.06 breaking a flag pattern (bearish) in a channel and in a range. We are looking for a continuation to the ATR target @ 146.18 with the further...

Australian Dollar Rebounds Despite Soft GDP By Kenny Fisher - Dec 06, 2023

Australian GDP falls to 0.2% AUD/USD rebounds after two-day losing streak The Australian dollar has bounced back on Wednesday and snapped a two-day losing streak. In the European...

Add a Comment

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:

Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
Only English comments will be allowed.
Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

I have read Investing.com's comments guidelines and agree to the terms described.

I Agree

Write your thoughts here

Are you sure you want to delete this chart?

Delete Cancel

Post

Post also to:

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.

Comments (1)

Francline Yatich Mar 15, 2023 5:40PM ET

Follow this post

Unfollow this post

Save

Saved. See Saved Items.

This comment has already been saved in your Saved Items

Block User

hello

1 0

Report

<div id="comment">
				<div class="comment js-comment" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="247920536">
    <div class="mainComment js-content">
       <div class="commentInnerWrapper">
        <a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody">
                					<span class="commentUsername">
                    	<a href="{userLink}" class="js-user-link js-user-name">{username}</a>
					</span>
                                <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
                <div class="commentDropDown js-commentDropDownWrapper " data-user-id="247920536" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button" data-reg_ep="follow comment">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save"  data-reg_ep="save comment">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow js-option blockUser js-block-option" data-comment-id="{commentID}"  data-user-id="247920536" data-reg_ep="block user comments">
			<a href="javascript:void(0);">
				<span class="blockIcon middle"></span>Block User			</a>
		</div>
				<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>
                 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div>             </div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="commentBigChart js-comment-chart" onclick="openViewChartPopup('{commentID}')">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="247920536">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
                            <a href="javascript:void(0);" id="commentFlag_{commentID}">
                                <span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
                            </a>
                        </div>
                    				</div>
					</div>
	   </div>
	</div>
	</div>			</div>
			<div id="reply">
				
    <div class="commentReply js-comment js-comment-reply" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
		<div class="commentInnerWrapper"><a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody js-content">
            				<span class="commentUsername">
					<a href="{userLink}" class="commentUsername js-user-link js-user-name" onMouseOver="">{username}</a>
				</span>
                        <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
			 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div> 			<div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

</div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="replyBigChart displayNone js-comment-chart">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
				<span id="commentSmallChart{commentID}" class="commentSmallChart pointer js-comment-chart" onclick="openViewChartPopup('{commentID}')">
                    <img src="https://d1-invdn-com.investing.com/comments_images/{commentImageSmall}" width="116" height="52" alt="{commentAlt}">
                    <span class="chartMagnifyOverlay displayNone"></span>
                    <span class="searchGlassIcon chartMagnify displayNone"></span>
                </span>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

Are you sure you want to delete this chart?

Delete Cancel

Post

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

I feel that this comment is:

Spam

Offensive

Thank You!

Your report has been sent to our moderators for review

Central Banks

Interest Rates

Next Meeting

FED

5.50%

Dec 13, 2023

ECB

4.50%

Dec 14, 2023

BOE

5.25%

Dec 14, 2023

SNB

1.75%

Dec 14, 2023

RBA

4.35%

Jan 02, 2024

BOC

5.00%

Dec 06, 2023

RBNZ

5.50%

Feb 28, 2024

BOJ

-0.10%

Dec 19, 2023

CBR

15.00%

Dec 15, 2023

RBI

6.50%

Dec 08, 2023

PBOC

3.45%

BCB

12.25%

Dec 13, 2023

US 30	36,029.5	-24.9	-0.07%
US 500	4,546.4	-2.9	-0.06%
Dow Jones	36,054.43	-70.13	-0.19%
S&P 500	4,549.34	-17.84	-0.39%
Nasdaq	14,146.71	-83.20	-0.58%
S&P 500 VIX	12.97	+0.12	+0.93%
Dollar Index	104.132	+0.024	+0.02%

Crude Oil WTI	69.76	+0.38	+0.55%
Brent Oil	74.65	+0.35	+0.47%
Natural Gas	2.561	-0.006	-0.23%
Gold	2,044.05	-3.85	-0.19%
Silver	24.163	-0.065	-0.27%
Copper	3.7532	+0.0232	+0.62%
US Soybeans	1,297.38	+0.88	+0.07%

U.S. 10Y	4.132	+0.013	+0.32%
U.S. 30Y	4.233	+0.009	+0.20%
U.S. 5Y	4.126	+0.003	+0.08%
U.S. 3M	5.425	+0.018	+0.33%
US 10Y T-Note	111.08	-0.06	-0.06%
Euro Bund	135.25	-0.20	-0.15%
10-2 Yield Spread	-48.55	-7.18	17.36%

Apple	192.32	-1.10	-0.57%
Alphabet A	130.02	-0.97	-0.74%
Tesla	239.37	+0.65	+0.27%
Amazon.com	144.52	-2.36	-1.61%
Netflix	446.73	-8.42	-1.85%
Meta Platforms	317.45	-0.84	-0.26%
Bank of America	30.54	-0.04	-0.13%

Robust Renminbi Despite Falling Stocks And A Rising U.S. Dollar

Related Articles