Chinese Yuan Suffers from Poor Data, Sino-US Trade Quarrel

The Chinese yuan declined against the US dollar today after almost all Chinese macroeconomic indicators released today missed expectations. The developments in the US-China trade negotiations were not good for the currency as well.
The National Bureau of Statistics of China reported that fixed asset investment rose 6.1% in the first four months of this year. That is compared to the 6.3% increase logged in the previous reporting period and 6.4% predicted by analysts.
Industrial production rose 5.4% in April, year-on-year. It was a much slower growth than 6.5% promised by economists and 8.5% registered in March.
Retail sales rose 7.2% last month from a year ago. Experts had promised about the same 8.7% rate of growth as in the preceding month.
The unemployment rate was the only positive piece of data, showing a decline from 5.2% to 5.0%.
Meanwhile, reports said that China scrapped 30% of the draft trade deal with the USA. The document shrank from 150 pages to 105 pages as Chinese officials objected to what they have called “an unequal treaty”.
USD/CNY rallied from 6.9034 to 6.9146 as of 12:02 GMT today after touching the daily low of 6.8932 earlier.

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