Chinese export growth likely to have decelerated in June

China’s export growth is expected to have decelerated in June. According to a DBS Bank research report, export growth is likely to have slowed to 10.6 percent year-on-year in the month from May’s 12.6 percent because of the accelerating trade fight with the U.S.

The trade figures in the coming months might be clouded by the Sino-U.S. trade frictions and the easing domestic consumption sentiment. On the monetary side, M2 growth is expected to have stayed at single-digit due to deleveraging, where new increase in aggregate financing in May dropped 28.4 percent year-on-year.

The higher import commodity prices in the midst of a strengthening USD would continue to put upward pressure to producer price inflation. However, consumer price inflation should have remained in-check in the midst of lingering year-on-year fall in pork price, stated DBS Bank.

At 13:00 GMT the FxWirePro's Hourly Strength Index of Chinese Yuan was slightly bearish at -60.054, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -69.4572. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex