Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
The latest data continue to suggest weakened growth momentum and the growth outlook. Continued policy easing is anticipated to bolster the slowdown amid accelerating capital outflows and CNY depreciation pressures.
Barclays recommends the following actions in order to accelerate the growth momentum:
- USDCNY is seemed to moving to 6.80 by year-end. While there are downside risks to their USDCNY forecast, they hold long a USDCNH call spread and long USDCNH 6m forward recommendation as markets are not sufficiently pricing in the prospects of a sharper weakening of the CNY. Slower growth, capital outflows, a CNY that is 5-10% expensive, and rising global uncertainty would steer China away from pegging to the rising dollar. This happening in reaction to a stronger USD environment as well as the need to stabilise outflows.
- Look to pay 1y CNH CCS, as RMB weakness is likely to drive forward points higher and reduce the attractiveness of CNH-denominated assets. In NDIRS, weak GDP growth and further easing by the PBoC should keep rates well-anchored. Nevertheless, we stay on the sidelines and wait for better levels, with the curve fairly reflecting these dynamics.
