USD/CNY is trading at 6.9475, bouncing back due to resurgent optimism that the China-US trade war might be resolved in late November and on stable Chinese inflation rates. October inflation came in 2.50% (prior: 2.50%): the outlook of a weaker Renminbi will necessarily cause imports to be costlier, which will ultimately accelerate inflation starting in 2019. Hopes are high that US President Donald Trump and Chinese President Xi Jinping can be meet during the G20 meeting in Argentina over 30 November-1 December 2018. Meanwhile, Chinese equities have had a tough week. Following the announcement of lower economic growth in Q3, 6.50% - the lowest since 2009 – the Chinese market has been losing ground. Asian shares are having their sixth slide in seven weeks, thus erasing last week gains.
This report has been prepared by AC Markets and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by AC Markets personnel at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.