FX.co ★ Offshore Yuan Retreats from Multi-Year High

The offshore yuan eased to around 6.76 per dollar on Tuesday, pulling back from a more than three-year high hit in the previous session as investors digested a mixed batch of Chinese economic data. New home prices across 70 cities fell for the 35th straight month, maintaining their steepest pace of decline since May 2025, while fixed-asset investment for January–May dropped by more than markets had expected. In addition, retail sales unexpectedly contracted in May, marking their first year-on-year decline since December 2022. Offering some support, industrial output in May beat forecasts and picked up from April’s near three-year low, while the surveyed urban unemployment rate fell to a five-month low. The yuan’s retreat was further pressured by Allianz Global Investors, which pared back some of its bullish positions in the currency and moved to a neutral stance, locking in profits after a rally that had made the yuan Asia’s best-performing major currency this year.