RMB Spot Rebound Will Arbitrage Short-Term Upward Trend

China's GDP data were better than expected, and the renminbi recovered somewhat from the US dollar on Tuesday, and the middle price also rebounded.

Market participants believe that short-term economic data will have an impact on the recovery of the renminbi. But because of the difference between domestic and international markets, the existence of arbitrage warrant makes the appreciation of short-term domestic exchange rate limited.

At the close, the US dollar / Renminbi inquiry system closed at 6.2140, a decrease of 65 points compared with the previous trading day.

They also said that after the announcement of the economic data, the settlement plate was heavier.

More balanced.

The central bank's central parity is also conducive to stabilizing the market's exchange rate expectations and promoting the short-term strengthening of the renminbi.

According to the data released by Hongkong Finance Association, the fixed price of US dollar / Renminbi (Hongkong) spot exchange rate in January 20th was 6.2201/6.2206.

"Better than expected GDP data is a good thing for the renminbi, leading to an appreciation of CNH and a direct impact on the domestic (US dollar) decline."

A city trader said.

Senior economist at Bank of Communications

It is believed that China's GDP growth rate in 2014 was slightly better than the market's pessimistic expectations. With this boost, the RMB spot exchange rate has been restored in the currency market within days. But today, the central bank's policy intention to raise the exchange rate intermediate price to actively guide the RMB to maintain stability is also conducive to the short-term strength of the exchange rate to a certain extent.

The chief economist of Guotai Junan, Lin Cai Yi, believes that the short-term economic data is right.

The recovery has an impact, but the long term appreciation of the renminbi is basically over.

Although China's gross domestic product (GDP) growth in 2014 was the lowest in 24 years, the investment and consumption remained stable, and the proportion of three production increased. The main data were also accurately set at the target area set at the beginning of the year, indicating that China's macroeconomic regulation and control standard for reducing quality and speed up is up to standard.

In the offshore market, the 1 year US dollar / RMB non deliverable forwards reported RMB 6.3155/6.3205 yuan.

The US dollar against the yen rose to a one week high on Tuesday in the global exchange market, after the growth of China's economic growth figures was not as bad as many feared, inhibiting the demand for yen.

The Hong Kong dollar / Renminbi inquiry system closed at 0.8015, down 10 points from the previous trading day, and the 100 yen / RMB inquiry system closed at 5.2550, a decrease of 521 points compared with the previous trading day; the euro / RMB inquiry system closed at 7.19890, an increase of 19 points compared with the previous trading day; the pound / RMB inquiry system closed at 9.3836, a decrease of 361 points compared with the previous trading day; the Australian dollar / Renminbi inquiry system closed at 5.0944 points, a reduction of 165 points compared with the previous trading day; the New Zealand dollar / RMB inquiry system was reduced to 9.3836, less than that of the previous trading day; the Poyuan / RMB inquiry system was reduced to less than the previous trading day.