China's central bank set the yuan's daily fix at 6.7313, the firmest since early 2023 but still 336 pips weaker than models implied. September car retail sales fell 28.0% year on year while passenger-vehicle exports jumped 73.7%.
Gavekal's Andrew Batson notes the BIS nominal effective yuan and the PBOC's CFETS basket have both returned to their March 2022 peaks, even as Beijing insists it has no intention of devaluing for trade advantage. Source
Monday's USD/CNY central parity came in at 6.7313, 17 pips stronger than Friday's 6.7330, as set by the People's Bank of China (PBOC). FinancialJuice called it the firmest official fix since 2 February 2023. The offshore yuan held near 6.69, and a Bloomberg replica of the China Foreign Exchange Trade System (CFETS) RMB index printed 103.9 on Friday, its highest since April 2022. MUFG puts the yuan's year-to-date gain closer to 6%.
