China’s yuan holds steady after upbeat December trade data

SHANGHAI: The yuan held steady against the US dollar on Wednesday after China reported stronger-than-expected December trade data, even as the greenback hovered near a one-month high.

China’s December exports rose 6.6% from a year earlier in dollar terms, while imports gained 5.7%; both beat expectations.

The government also reported a robust 2025 export performance with a record trillion-dollar surplus, as manufacturers braced for three more years of a Trump administration redirecting US orders to other markets.

The spot yuan opened at 6.9799 per dollar and was last trading at 6.9758 as of 0401 GMT, 37 pips firmer than the previous late-session close.

Before the market opened, the People’s Bank of China set the midpoint rate at 7.0120 per dollar, 313 pips weaker than a Reuters estimate. The spot yuan is allowed to trade 2% on either side of the fixed midpoint each day.

  Since late November, the central bank has set weaker-than-expected midpoint fixings, which market participants have interpreted as an effort to prevent the Chinese currency from appreciating too quickly.

  Analysts at Donghai Securities said in a note that 6.80 per dollar would be a key yuan level for 2026, with sizeable hoarded FX positions clustered around that holding cost. A firm break below 6.80 could trigger stop-loss settlements by exporters and open a fresh spell of yuan appreciation, they said.

Offshore, the yuan traded at 6.9725 yuan per dollar, up about 0.01% in Asian trade.

The US dollar index, which measures the greenback’s strength against a basket of six currencies, was last up 0.3% at 99.18, retracing losses from Monday after US President Donald Trump threatened Fed Chair Jerome Powell with a criminal indictment.

Separately, market participants will switch their attention to credit lending data due this week for more clues on the health of the Chinese economy.