{"id":43050,"date":"2025-08-31T11:36:26","date_gmt":"2025-08-31T11:36:26","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/08\/31\/usd-cny-forecast-as-chinas-renminbi-growth-accelerated\/"},"modified":"2025-08-31T11:36:26","modified_gmt":"2025-08-31T11:36:26","slug":"usd-cny-forecast-as-chinas-renminbi-growth-accelerated","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/08\/31\/usd-cny-forecast-as-chinas-renminbi-growth-accelerated\/","title":{"rendered":"USD\/CNY forecast as China\u2019s renminbi growth accelerated"},"content":{"rendered":"
<\/div>\n

The renminbi is performing well as the Chinese economy continues to thrive. The USD\/CNY exchange rate plunged to a low of 7.1300, its lowest level since November last year and 3% below its highest level this year.<\/p>\n

Chinese yuan gains momentum <\/h2>\n

The USD\/CNY pair continued falling last week, helped by the Chinese economy, the roaring stock market, and the falling US dollar.<\/p>\n

Data released on Sunday showed that the Chinese manufacturing and services sectors continued improving in August.<\/p>\n

The manufacturing PMI increased from 49.3 in July to 49.4 in August, higher than the median estimate of 49.2. While a PMI figure of below 50 is a sign of contraction, the fact that it is moving upwards is a good indicator.<\/p>\n

The report showed that the non-manufacturing PMI rose from 50.1 in July to 50.3 in August, helping to push the general PMI up from 50.2 to 50.5.<\/p>\n

Recent data has shown that the Chinese economy was doing well in spite of the ongoing trade war with the United States.<\/p>\n

A report by the statistics agency showed that the Chinese economy grew by 5.2% in the second quarter, down from 5.4% in the first one. This growth was driven by the rising exports as American companies rushed to buy products before Trump’s tariffs<\/a>.<\/p>\n

The first and second quarter data means that the Chinese economy will likely grow at a faster pace than the planned 5%. <\/p>\n

Meanwhile, the Chinese yuan has also done well as the stock market has surged in the past few months. The Shanghai Composite<\/a> <\/strong>has soared to its highest level in years, thanks to increased participation by retail investors.<\/p>\n

US Dollar Index weakness <\/h2>\n

The USD\/CNY exchange rate has plunged because of the ongoing US dollar weakness. Data shows that the DXY Index has plunged from the year-to-date high of $110 to below $98 as the economy has continued to struggle.<\/p>\n

Recent data showed that the US economy grew by 3.3% in the second quarter. While this was an improvement, it came after the economy contracted in Q1 as the Chinese one grew.<\/p>\n

The US labor market has deteriorated, with the unemployment rate rising to 4.2% in July. It created just 73,000 jobs<\/a> in July, and analysts expect it to have added 78k in August.<\/p>\n

Therefore, analysts expect the Federal Reserve to begin cutting interest rates at its upcoming meeting in September.<\/p>\n

USD\/CNY technical analysis <\/h2>\n
USD\/CNY chart by TradingView<\/figcaption><\/figure>\n

The daily timeframe chart shows that the USD\/CNY exchange rate has been in a strong downward trend in the past few months. It has crashed from a high of 7.3498 in April to the current 7.1300, its lowest level since November last year.<\/p>\n

It recently plunged below the important support level at 7.1480, its lowest level on July 24. Moving below that level confirmed the bearish breakout.<\/p>\n

The pair remains below the 50-day and 200-day moving averages, which formed a death cross in June.<\/p>\n

Therefore, the pair will likely continue falling as sellers target the key support level at 7.010. Such a move will signal a 1.68% drop below the current level.<\/p>\n

The post USD\/CNY forecast as China\u2019s renminbi growth accelerated<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The renminbi is performing well as the Chinese economy continues to thrive. The USD\/CNY exchange rate plunged to a low of 7.1300, its lowest level since November last year and 3% below its highest level this year. Chinese yuan gains momentum  The USD\/CNY pair continued falling last week, helped by the Chinese economy, the roaring <\/p>\n","protected":false},"author":1,"featured_media":43051,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-43050","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/43050","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=43050"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/43050\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/43051"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=43050"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=43050"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=43050"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}