CNY: mixed economic data releases from China – BTMU

By FXStreet FXStreet (Guatemala) – Lee Hardman, analyst at The Bank of Tokyo-Mitsubishi UFJ, Ltd, explained that the foreign exchange market has remained relatively stable in the Asian trading session ahead of this week’s FOMC meeting which could prove to be a significant turning point for Fed policy.

Key Quotes:

“Intervention from the PBoC has helped bring the offshore, onshore, and daily fixing rates for the renminbi closer together and they have also remained relatively stable overnight. The main economic data releases over the weekend have been from China. The latest retail sales report revealed that the annual rate of growth accelerated by 0.3 percentage point to 10.8% in August moving further above the cyclical low of 10.0% from April. In contrast, the latest industrial production and fixed asset investment reports revealed weaker activity.”

“The year to date annual measure of fixed asset investment excluding rural declined further by 0.3 percentage point to a new cyclical low of 10.9% in August while the equivalent industrial production measure remained stable close a cyclical low at 6.3%. Weak growth momentum and capital outflows are likely to keep pressure on the Chinese authorities to keep easing policy. A plan has been announced over the weekend to reform …read more

Source:: FX Street