Chinese GDP Sees Greater Than Expected Decline in Q3 2019
Even as the risk of the US-China trade war appears to be waning after Trump announced a phase 1 trade deal in the works, the prolonged tariff wars continue to wreak havoc on the Chinese economy. According to data released earlier today, China’s economic growth slowed down by more than expected in the third quarter of this year, driven by weakness in factory production.
China’s Q3 GDP slipped to 6.0% against 6.1% expected and 6.2% in Q2 2019, increasing concerns that the government would consider rolling out more stimulus measures to support the economy from weakening further. Although the latest round of talks has gotten the US and China closer to a trade deal, negotiations are still on and the deal will take some more time to finalize and sign. Following this, it will take longer for its effect to boost economic growth in both nations.
On the release of this news, USD/CNH continued to trade steady as the weakness in the US dollar failed to make much of a movement in this forex pair despite the release of the weaker GDP data. At the time of writing, USD/CNH is trading slightly bullish now around 7.086.
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