Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Forex - Yuan Gains Despite Weak China Data; U.S. Dollar Slips

Published 12/27/2018, 12:52 AM
Updated 12/27/2018, 12:52 AM
© Reuters. - The yuan gained on Thursday in Asia even after official data showed China’s industrial profits recorded their first contraction since December 2015.

The USD/CNY pair slipped 0.1% to 6.8919 at 12:43 AM ET (05:43 GMT).

Industrial profits fell 1.8% to 594.8 billion yuan in November from a year earlier, the National Bureau of Statistics reported on Thursday in Asia.

Meanwhile, Bloomberg reported that the U.S. and China are set to resume trade talks in early January.

A U.S. government delegation will travel to Beijing in the week of Jan. 7 to hold the first face-to-face trade talks with Chinese officials since U.S. President Donald Trump and his Chinese counterpart Xi Jinping agreed on a 90-day truce in Argentina earlier this month, Bloomberg reported citing two people familiar with the matter said.

The People's Bank of China (PBoC) fixed the yuan's reference rate at 6.8894 for Thursday compared to the previous session's 6.8825.

In Open Market Operations (OMO), the PBoC also injected 250 billion yuan via 7-day repo operations, bringing the day's OMOs to a net 30 billion yuan after the day's 120-billion maturity.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies was down 0.2% to 96.395.

U.S. equities rebounded on Wednesday as easing tensions between the White House and the U.S. Federal Reserve lifted market sentiment.

White House economic adviser Kevin Hassett told reporters that Fed Chairman Jerome Powell's job was "100 percent" safe and that Trump won’t try to fire him.

Last week, the Federal Reserve hiked rates for the fourth time this year and reports suggested Trump was discussing the possibilities with his advisors whether he has the authority to fire Powell.

Elsewhere, the USD/JPY pair declined 0.3% to 111.09.

The AUD/USD pair and the NZD/USD pair both lost 0.2%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.