Producer prices in China fell at their softest pace in two years in July, offering some comfort to the country's manufacturers.
China could be lining up an RRR cut if exports and imports slow and if its inflation cools, says Parry International Trading's Gavin Parry.
UBS WM's Dominic Schnider and JPMorgan's Adrian Mowat discuss their expectations of China's economic data due this week and yuan moves.
China's foreign exchange reserves fell to $3.20 trillion in July, central bank data showed on Sunday, in line with analyst expectations.
Asia markets fell on Wednesday, with the Nikkei selling off on the back of another yen spike amid disappointment with the country's stimulus plan.
Saxo Bank Group CEO, Adam Reynolds, says he will sell USD/JPY around 103 as the BOJ running up against limits of what it can do.
The official activity gauge slipped into contraction territory but an unofficial survey pointed to an expansion for the first time in 17 months.
Daniel So from CMB International Securities explains why the Caixin figure was surprising following a weak print from the official gauge.
As long as the greenback is strong, the renminbi can't afford to be weak, notes Liu Li Gang from Citi.
Fixed asset investment has been declining, which means China may be unable to fulfill its 10.5 percent investment goal, according to Citi's Liu Li Gang.
Citi's Mohammed Apabhai explains that dollar strength will lead to a continued devaluation of the yuan, which then will put pressure on bond markets.
The softness in Asian markets is because of profit taking after a strong bull run in the past week, says Ample Capital's ALex Wong.
The world's second-largest economy grew by 6.7 percent in the April-June quarter, narrowly beating estimates of a 6.6 percent expansion.
China's second-half GDP is likely to rise up to 6.8 percent with support from more fiscal stimulus, says Standard Chartered's Clive McDonnell.
The flood in China will impact crop prices and push inflation up, restraining the PBOC's policy options, says Bank of Communications Intl's Hao Hong.
China's June trade figures will be softer year-on-year due to a strong base effect and weaker global economy, says JPMorgan's Grace Ng.
China's currency may be expected to stay relatively stable, but that's based on myths about the mainland economy, Daiwa said.
Soft China inflation data has sparked speculation the economic giant may join the ranks of various central banks in cutting interest rates.
China's June consumer inflation grew at its slowest since January, while producer prices extended falls, reinforcing expectations for more stimulus.
Since Brexit, markets have largely forgotten about the pessimism surrounding China and its financial markets, notes Mark Tinker of AXA Investment Managers.