2012.05.30 05:32:41 MARKET TALK: Yuan's Near Term Outlook Bearish - Credit Agricole

0332 GMT [Dow Jones] The near term outlook for the yuan is to the downside as the negative comments on China's growth from Premier Wen Jiabao and a media story denying plans of a major stimulus will increase risk aversion and pressure the local currency, says Credit Agricole. The house says USD gains against majors, especially the EUR, are forcing China to gradually disregard the old notion of not weakening its currency against the USD and moving towards basket-targeting, which implies room for more depreciation against the USD. But it seems that the PBOC is moving the yuan only partially in line with USD's broad strength in global markets, allowing only slow depreciation of the local currency against the greenback, perhaps due to recent U.S. calls for more CNY appreciation, it adds. (wynne.wang@dowjones.com) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com (END) Dow Jones Newswires May 29, 2012 23:32 ET (03:32 GMT)