Chinese domestic demand likely to have moderated further in early 2019

Chinese domestic demand is likely to have moderated further on entering 2019, noted DBS Bank in a research report. The Chinese retail sales and industrial production growth data for the month of February is set to release tomorrow. According to DBS, retail sales and industrial production growth are likely to have eased to 8.7 percent and 6 percent year-on-year, respectively.

This greatly mirrors the continued fall in the official manufacturing PMI. In particular, the new export order component shrank for the ninth straight month, because of external headwinds. Fixed asset investment would have rebounded back to 6.3 percent from 5.9 percent, owing to easing liquidity conditions, and the increased around of infrastructure projects approved by the National Development and Reform Commission, said DBS Bank.

At 12:00 GMT the FxWirePro's Hourly Strength Index of Chinese Yuan was bullish at 94.4459 while the FxWirePro's Hourly Strength Index of US Dollar was highly bearish at -106.521 more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex