China’s weak domestic economy constrains yuan upside
China’s economy grew at a rate of 4.3% over the past three months, the slowest pace ever recorded outside of the pandemic.
The reported GDP growth was another 0.2 percentage points lower than consensus expectations.
Retail sales rose by 1.0% in nominal terms but remained unchanged in real terms compared to the previous year.
The USD/CNY exchange rate has moved back toward 6.77, representing a slight appreciation of the CNY, but the scope for further appreciation is likely to remain limited.