China industrial production rose 4.2% yoy in August, above expectation of 4.0% yoy. Retail sales rose 5.4% yoy, above expectation of 3.2% yoy. That’s the fastest pace since January-February period this year. Fixed asset investment rose 5.8% ytd yoy, above expectation of 5.6%.
“The economy held out against multiple unexpected headwinds in August and showed a positive recovery with the help of more additional supportive policies,” the NBS said in a statement. “The manufacturing needs are steady and rising, employment and prices are stable, most indices are better than last month.”
The set of better than expected data provided little support to the decline Yuan, with USD/CNH breaking through 7 psychological resistance this week. There is no sign of topping in the pair yet. USD/CNH is on track to 61.8% projection of 6.3057 to 6.8372 from 6.7159 at 7.0444. Firm break there will set the stage for pandemic high at 7.1961.
