China PMI data is due over the weekend – the country is "suffering a confidence shock"

<p>China's long holiday starts today – markets are closed and there will be no CNY reference rate setting today and all next week. </p><p>However, there is data due over the weekend:</p><p>As for other economic indicators, Bank of America have a note out which includes a look at China and what's to come:</p><p>CPI inflation (the <a href="https://www.forexlive.com/news/china-august-inflation-cpi-01-yy-vs-expected-02-ppi-30-yy-expected-30-20230909/" target="_blank" rel="follow">latest reading was +0.3%</a> y/y) forecasts:</p><ul><li>expected to increase to 1.8% in 2024 </li><li>2.1% in 2025</li><li>BoA says the country is in the midst of fighting deflation</li></ul><p>GDP growth forecasts:</p><ul><li>5.1% this year,</li><li>4.8% in 2024</li><li>4.8% in 2025</li></ul><p>Boa add that China “is suffering a confidence shock and the government needs to come up with a comprehensive plan to stabilize expectations”.</p>

This article was written by Eamonn Sheridan at www.forexlive.com.