The Chinese yuan rose to its firmest level since July 2022 after China's third-quarter growth beat forecasts. The AI boom helped boost exports, while property investment and domestic spending stayed weak.
The Chinese yuan strengthened to its firmest level since July 2022, with the onshore USD/CNY pair falling 0.1% to 6.6812 yuan. The offshore USD/CNH pair also edged lower to four-year lows, as stronger-than-expected domestic growth figures lifted the currency.
China's GDP beats the 4.4% forecast
China's economy expanded 4.5% year-on-year in the July-September quarter, according to Investing.com, beating the 4.4% forecast and accelerating from 4.3% in the previous quarter. The GDP reading sits at the bottom end of Beijing's annual growth target of 4.5%-5%, the BBC reported.
September data added to the picture. Industrial output rose 5.5% and retail sales increased 1.1%, exceeding expectations and suggesting some improvement in domestic demand.
Exports carry growth as property slumps
The BBC attributes the rebound to the artificial intelligence boom, which helped boost exports. Sales of high-tech goods rose by 14.3%, while production of both batteries and industrial robots grew by more than 29%, according to official figures.
Weakness at home persists, however. Property investment fell by more than 20% in the first nine months from the same period last year. Dave Chia, an economist at Moody's Analytics, pointed to China's reliance on a "single external engine" in exports as one risk.
Dollar steady as the euro slips
The US Dollar Index was steady at 101.87, after a 0.4% weekly fall that ended a four-week winning streak. Meanwhile, the euro weakened as violent protests in France heightened political uncertainty, with EUR/USD down 0.1% at $1.219.
Sources: Investing.com, BBC News
Trading involves risk.
Risk Disclaimer
