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

Yuan stead ahead of policy announcement: China's yuan held steady against the US dollar as reactions to the country's housing policy briefing were muted overall and as investors await China's economic activities data due on Friday. The dollar edged down on Thursday but still stood near 2-1/2-month highs on the 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.Traders were not expecting outsized moves going into the press conference and the yuan was trading in a narrow range by midday. The spot yuan &lt;CNY=CFXS&gt; opened at 7.1227 per dollar and was last trading 1 pip lower than the previous late session close at 7.1198 as of 0256 GMT."Shorting yuan is still seen as the hedge against a Trump win," said Maybank analysts."Another reason for USDCNH upmove was due to some anxiety over upcoming China data," as trade, credit and inflation reports have disappointed investors so far, Maybank analysts said. The 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 their 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 traders are still favouring the dollar against the offshore yuan in the near term as rallies in China equities have eased. Another equity bull run would be a headwind, but this is unlikely near-term, as the NPCSC (Standing Committee of the National People's Congress) session could be delayed until after the US election, Citi traders said.China's stock market momentum has cooled over the 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.The dollar's six-currency index &lt;=USD&gt; was 0.039 per cent lower at 103.5.The offshore yuan traded at 7.1317 yuan per dollar &lt;CNH=&gt;, up about 0.07 per cent in Asian trade.

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

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

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