Chinese industrial production figures for the month of October released yesterday showed a modest decline, rising only 5.60%, below estimates of 5.80% and down from 5.70% in the prior month. Retail sales numbers were however upbeat, rising 11.00% during October and indicative of a larger shift from an export oriented market to more of a consumer oriented economy. The moderate trend of numbers continues to point to a sluggish economic growth from the world's second largest economy. Taken along with the ongoing deflation in producer prices and further deceleration of consumer inflation growth, the People’s Bank of China is likely to announce further rate cuts along with another possible reduction in the bank reserve requirements ratio within the quarter. USDCNH tested the highs of 6.3990 before giving back the gains and closing on a bearish note at 6.3890.