FX.co ★ Offshore Yuan Holds Near 3-Week Highs

The offshore yuan remained steady near 7.12 per dollar on Monday, maintaining its position close to three-week highs as investors evaluated a series of new economic data from China. Recent statistics indicated that the Chinese economy experienced a slowdown for the second consecutive quarter, growing at the slowest rate in a year. This was due to strong exports partially mitigating weaker consumer spending and investment. Additionally, retail sales growth decelerated, and fixed-asset investment experienced its first decline since 2020, highlighting ongoing challenges in the property sector. However, industrial production surpassed expectations, demonstrating strength in the manufacturing sector. Regarding monetary policy, the People's Bank of China decided to keep its benchmark lending rates unchanged for the fifth month in a row, meeting market expectations by maintaining the one-year and five-year loan prime rates. Moreover, markets observed an easing of Sino-US trade tensions after US President Trump remarked that his proposed tariffs on Chinese goods were "not sustainable," as officials prepare for forthcoming bilateral discussions.