China's November Consumer Price Index (CPI) rose to 0.7% year-on-year, aligning with market expectations. Core inflation remained steady at 1.2%, while the Producer Price Index (PPI) continued to show deflationary trends. This persistent weakness in domestic demand is influencing market sentiment and supporting the ongoing downtrend in the USD/CNH exchange rate.
As the USD/CNH pair continues to decline, these inflation figures suggest that the Chinese economy is grappling with sluggish demand, thereby impacting trading dynamics. A softer inflation outlook may prompt traders to adjust their positions in the currency market, particularly in relation to the USD. Analysts remain cautious, noting that sustained low inflation could hinder the yuan's performance against the dollar in upcoming sessions.
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Data Source: FX Killer Analysis Team Updated: 2025-12-10 10:50
Disclaimer: This article is for reference only and does not constitute investment advice. Forex trading involves risks; please make decisions carefully.