China's yuan steady after housing policy announcement, eyes Q3 GDP

Yuan ste ahe of policy announcement: China's yuan held stey against US dollar as reactions to country's housing policy briefing were muted overall and as investors await China's economic activities data due on Friday.  

dollar edged down on Thursday but still stood near 2-1/2-month highs on prospect of a Donald Trump presidency.

China will expand a "white list" of housing projects eligible for financing and increase bank lending for such developments to 4 trillion yuan ($562 billion), Minister of Housing and Urban-Rural Development Ni Hong said on Thursday.

Trers were not expecting outsized moves going into press conference and yuan was tring in a narrow range by midday. 

spot yuan <CNY=CFXS> opened at 7.1227 per dollar and was last tring 1 pip lower than previous late session close at 7.1198 as of 0256 GMT.

"Shorting yuan is still seen as hedge against a Trump win," said Maybank analysts.

"Anor reason for USDCNH upmove was due to some anxiety over upcoming China data," as tre, credit and inflation reports have disappointed investors so far, Maybank analysts said. 

yuan is down 1.4 per cent against a robust dollar this month, and 0.3 per cent weaker this year. 

Market participants are turning ir attention to China's third-quarter GDP and a slew of macro economic data including retail sales and house prices due on Friday. 

Meanwhile, Citi's trers are still favouring dollar against offshore yuan in near term as rallies in China equities have eased. 

Anor equity bull run would be a hewind, but this is unlikely near-term, as NPCSC (Standing Committee of National People's Congress) session could be delayed until after US election, Citi trers said.

China's stock market momentum has cooled over past week, after a frenzied rally since late last month when a series of rate cuts and announcements raised expectations of a major government effort to bolster its lackluster economy.

dollar's six-currency index <=USD> was 0.039 per cent lower at 103.5.

offshore yuan tred at 7.1317 yuan per dollar <CNH=>, up about 0.07 per cent in Asian tre.