According to the latest statement made by the People’s Bank of China, the central bank will have to implement flexible preventive policies in order to support the national economy amid global economic slowdown.
China desperately needs to restore its economic growth through reforms as the current financial and economic situation around the globe keeps pressing the Chinese economy. Therefore, the central bank’s goal is to make its policies as efficient as possible, simultaneously ensuring stability.
As we know, the Chinese economy, which is the world’s 2nd largest one, slowed down till the minimal level in 3 years. The slowdown was mainly caused by an export decline while the domestic demand failed to make up for the losses. Analysts say that the year-over-year growth in 2012 will be the lowest one in 13 years.
Forex.
According to , the Chinese Yuan keeps strengthening against the US Dollar. The experts report that USDCNY is still forming a bearish move. The closest level of support is 6.2783.
The current bearish move will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above 6.3590 (as shown below).
