FX.co ★ CNY Rebounds on US-China Trade Talk Hopes, Strong Data

On Wednesday, the offshore yuan experienced an uptick to approximately 7.29 per dollar, recovering after two days of consecutive losses. This was fueled by optimism concerning possible trade discussions between the United States and China, alongside robust economic indicators from China that exceeded expectations. Beijing expressed a willingness to enter negotiations, highlighting the necessity for significant adjustments from the U.S., such as adopting more respectful diplomatic language and appointing a designated negotiator with the endorsement of President Trump. Further bolstering the positive sentiment, data released on Wednesday indicated that China's GDP in the first quarter of 2025 surpassed predictions, achieving its most substantial growth in a year and a half. Furthermore, China's industrial production in March reached its highest increase since June 2021, significantly beating market anticipations. Retail sales also showed their most rapid growth since December 2023, again outpacing market projections. On the employment front, the unemployment rate in March 2025 decreased from the two-year high observed in the previous month.