The yuan dropped to its lowest in 3 weeks in Monday trade after the shockingly deflationary CPI data over the weekend:

The yuna got some support from the People's Bank of China. The Bank continued its months-long efforts at setting the mid-rate much stronger for CNY than estimates suggested:

The 527 pip discrepancy between the reference rate and the Reuters estimate was the largest since late last month.

The CPI drop in November, and the further deepening of PPI deflation, was the fastest in three years and points to deflation-fuelled concerns over the health of China's economy.

The wait is on now for the upcoming Central Economic Work Conference (CEWC). This will be after the Chinese Communist Party's December Politburo meeting.

Via Barclays:

  • "Markets will look for more cues on next year's GDP target and policy directions in the annual meeting, although the official growth target will not be unveiled until the March National People's Congress (NPC)"

Offshore yuan update:

usdcnh chart deflation china November 2023