USD/CNY holds near 6.77 as Q2 GDP growth of 4.3% yoy falls short of Beijing’s 4.5%-5.0% target range.
The Chinese yuan traded at 6.77 against the dollar, slightly lower on the day, as weaker-than-expected growth and anticipated policy easing weighed on sentiment. Q2 GDP expanded 4.3% year-on-year, missing the official 4.5%-5.0% target range, reinforcing expectations of further stimulus.
China’s State Council pledged to meet full-year growth goals, calling for accelerated policy implementation and efficient fiscal fund deployment. Local governments, having used 94% of a CNY6 trillion debt-swapping allowance, are expected to ramp up growth-supporting investments in the second half.
The July Politburo meeting, likely held later this month, is set to define the macroeconomic stance for H2, with markets anticipating an easing bias while maintaining focus on high-tech sectors and supply chains.