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Early Wednesday morning in Asia, China’s Xinhua News Agency came out with the news quoting statements from the People’s Bank of China (PBOC) as it unveiled details of quarterly monetary policy committee held Friday.

“China will implement a prudent monetary policy that is flexible, precise, reasonable and moderate, and keep it consistent, stable and sustainable,” said the PBOC, per the news.

The PBOC also vowed further monetary support for the real economy, stressing more financial aid for small and micro firms as well as those involved in technological innovation and green development.

Additionally, the statement mentioned that the PBOC will use a variety of monetary tools to ensure liquidity at a reasonable and ample level and keep the growth of money supply and social financing basically in line with nominal economic growth and maintain a stable macro leverage ratio.

In a different story, quoted by Reuters, China’s National Bureau of Statistics revised down 2019 gross domestic product (GDP) from 6.1% previous estimation to 6.0%.

FX implications

Against this backdrop, USD/CNY stays on the back foot around the intraday low of 6.5244, currently down 0.09% to 6.5250.