Growth below expectations to remain a structural drag for CNH – Société Générale

USD/CNH is heavy near 7.2700. China’s private sector services growth traction unexpectedly slowed in January, Société Générale's FX analysts note.  

Growth to remain well below expectations

"The Caixin services PMI fell to a four-month low at 51.0 (consensus: 52.4) vs. 52.2 in December. Earlier this week, the Caixin January manufacturing PMI showed the factory sector at a virtual standstill. China’s steady drip feed of stimulus has done little to improve the economy’s medium-term outlook, which we believe hinges crucially on boosting consumption spending."

"Until that has been accomplished, growth will remain well below expectations and a structural drag for CNH."