CNY strengthens as China unveils urban consumption boost plan for 2030

The Chinese yuan has gained 0.2% against the dollar to 7.2450 as China's Ministry of Commerce and eight other departments announced an ambitious plan to create 10,000 '15-minute convenience living circles' across 100 cities by 2030. This policy aims to boost domestic consumption by developing neighborhood hubs that provide essential services within walking distance, addressing China's slowing retail sales growth which stood at 2.7% year-on-year in August. The initiative follows a series of stimulus measures aimed at reviving consumer spending amid property sector concerns and weak economic momentum. USD/CNY faces immediate support at 7.2400, with resistance at 7.2600. The announcement signals Beijing's commitment to structural economic reforms focused on domestic demand, potentially reducing reliance on exports. Traders should monitor upcoming Chinese retail sales and GDP data for confirmation of policy effectiveness, with further yuan appreciation likely if consumption metrics improve.