{"id":23383,"date":"2025-07-15T09:44:27","date_gmt":"2025-07-15T09:44:27","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=23383"},"modified":"2025-07-15T09:44:27","modified_gmt":"2025-07-15T09:44:27","slug":"pboc-support-helps-yuan-hold-firm","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/de-eu\/analysis\/pboc-support-helps-yuan-hold-firm\/","title":{"rendered":"PBOC support helps yuan hold firm"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2025\/07\/12-1-1024x536.png\" alt=\"\" class=\"wp-image-23386\" srcset=\"https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2025\/07\/12-1-1024x536.png 1024w, https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2025\/07\/12-1-300x157.png 300w, https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2025\/07\/12-1-768x402.png 768w, https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2025\/07\/12-1-500x262.png 500w, https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2025\/07\/12-1-400x209.png 400w, https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2025\/07\/12-1-350x183.png 350w, https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2025\/07\/12-1-200x105.png 200w, https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2025\/07\/12-1.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>China\u2019s currency is under pressure as investors weigh upbeat growth data against concerns over a fragile recovery. Despite signs of resilience, the outlook remains uncertain without stronger policy support. Markets now look to Beijing for clearer action to restore economic momentum.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Yuan slips on mixed outlook<\/strong><\/h2>\n\n\n\n<p>China\u2019s yuan edged lower against the US dollar on Tuesday, even after a stronger-than-expected GDP report.<\/p>\n\n\n\n<p>The USD\/CNH pair touched highs of 7.1782 before easing back to around 7.1776.<\/p>\n\n\n\n<p>The mild upward move signals investor caution, as markets digest a mixed batch of economic indicators and continue to eye potential stimulus measures from Beijing.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">China&#39;s economy set to slow in Q2 as pressure from US tariffs mounts <a href=\"https:\/\/t.co\/A3V0BbubE5\">https:\/\/t.co\/A3V0BbubE5<\/a> <a href=\"https:\/\/t.co\/A3V0BbubE5\">https:\/\/t.co\/A3V0BbubE5<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1944960170771022161?ref_src=twsrc%5Etfw\">July 15, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Although second-quarter GDP figures came in above forecasts \u2013 highlighting resilience in China\u2019s trade sector despite ongoing US tariffs \u2013 momentum in the broader economy remains fragile.<\/p>\n\n\n\n<p>Without meaningful support for households and more assertive policy moves, there\u2019s a risk that the recovery could stall in the second half of the year.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Technical analysis<\/strong><\/h2>\n\n\n\n<p>USD\/CNH recently rebounded to the 7.178 region, having broken above the 7.170\u20137.172 support band.<\/p>\n\n\n\n<p>The alignment of the 5\u2011, 10\u2011, and 30\u2011period moving averages to the upside indicates strengthening bullish momentum in the short term.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"442\" src=\"https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2025\/07\/image-12-1024x442.jpeg\" alt=\"\" class=\"wp-image-23384\" srcset=\"https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2025\/07\/image-12-1024x442.jpeg 1024w, https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2025\/07\/image-12-300x129.jpeg 300w, https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2025\/07\/image-12-768x331.jpeg 768w, https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2025\/07\/image-12-500x216.jpeg 500w, https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2025\/07\/image-12-400x173.jpeg 400w, https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2025\/07\/image-12-350x151.jpeg 350w, https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2025\/07\/image-12-200x86.jpeg 200w, https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2025\/07\/image-12.jpeg 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Picture: Bullish momentum building; eyes on breakout above 7.180, as seen on the <a href=\"https:\/\/apps.apple.com\/au\/app\/vt-markets-online-trading\/id1372647263?mt=8\" target=\"_blank\" rel=\"noopener\" title=\"VT Markets app\">VT Markets app<\/a>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>The MACD also remains in positive territory, with an expanding histogram that points to ongoing buying interest.<\/p>\n\n\n\n<p>A confirmed break above the 7.180 level could pave the way for a move towards the 7.190\u20137.200 zone.<\/p>\n\n\n\n<p>On the downside, 7.172\u20137.170 remains key support. A drop below that level could open the door to a deeper pullback into the 7.165\u20137.168 range.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>PBOC fix sends a stabilising signal<\/strong><\/h2>\n\n\n\n<p>Before markets opened, the <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-07-14\/pboc-supports-banks-moderate-bond-buying-flags-excessive-risk\" target=\"_blank\" rel=\"noopener nofollow\" title=\"People\u2019s Bank of China\">People\u2019s Bank of China<\/a> (PBOC) set the daily yuan reference rate at 7.1498 \u2013 around 260 pips stronger than Reuters forecasts.<\/p>\n\n\n\n<p>This move appears carefully designed to steady expectations and reduce market overreaction to softer economic undercurrents.<\/p>\n\n\n\n<p>The firmer fix reflects Beijing\u2019s desire to curb excessive depreciation, even as fundamentals continue to point toward a looser policy stance.<\/p>\n\n\n\n<p>The yuan remains allowed to fluctuate within a 2% band around the daily midpoint, a mechanism that has helped the onshore yuan (USD\/CNY) stay relatively stable near 7.1733.<\/p>\n\n\n\n<p>Meanwhile, the offshore yuan (USD\/CNH) slipped only marginally \u2013 down 0.04% to 7.1759 at last check.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Focus shifts to Politburo meeting and US inflation data<\/strong><\/h2>\n\n\n\n<p>With Q2 GDP data now released, market attention turns to the upcoming Politburo meeting, which is expected to outline China\u2019s economic priorities for the remainder of 2025.<\/p>\n\n\n\n<p>The spotlight is likely to fall on the troubled property sector, where fresh housing data and media reports suggest targeted stimulus measures may be under discussion.<\/p>\n\n\n\n<p>At the same time, traders are closely watching US Consumer Price Index (CPI) figures, due later today.<\/p>\n\n\n\n<p>A stronger-than-expected reading could bolster the US dollar further, especially if it revives speculation that the Federal Reserve may delay easing \u2013 or even consider another rate hike this year.<\/p>\n\n\n\n<p>Current market pricing reflects around 50 basis points of rate cuts by December, though this outlook could shift quickly depending on inflation trends.<\/p>\n\n\n\n<p>Despite weaker fundamentals and ongoing geopolitical concerns, the yuan has remained surprisingly steady in recent weeks \u2013 thanks largely to strict policy control and strategic FX interventions.<\/p>\n\n\n\n<p>However, the recent uptick in USD\/CNH may signal growing pressure. Unless China introduces substantial fiscal or structural measures soon, the yuan could face further depreciation \u2013 particularly if the Fed maintains a hawkish tone.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Click <a href=\"https:\/\/www.vtmarkets.net\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\" target=\"_blank\" rel=\"noopener\" title=\"here\">here<\/a> to open account and start trading.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>China\u2019s currency is under pressure as investors weigh upbeat growth data against concerns over a fragile recovery. Despite signs of resilience, the outlook remains uncertain without stronger policy support. Markets now look to Beijing for clearer action to restore economic momentum. Yuan slips on mixed outlook China\u2019s yuan edged lower against the US dollar on <a href=\"https:\/\/www.vtmarkets.com\/de-eu\/analysis\/pboc-support-helps-yuan-hold-firm\/\" class=\"read-more\">Continue Reading<\/a><\/p>\n","protected":false},"author":102,"featured_media":23386,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[28],"tags":[],"class_list":["post-23383","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/posts\/23383","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/users\/102"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/comments?post=23383"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/posts\/23383\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/media\/23386"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/media?parent=23383"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/categories?post=23383"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/tags?post=23383"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}