The Chinese activity data came in considerably weaker than anticipated in August, implying that the property deceleration has begun to bite. Industrial production expanded 6 percent year-on-year in August, from 6.4 percent in the prior month. Meanwhile, retail sales rose 10.1 percent year-on-year in August, the lowest since April 2016. Moreover, fixed asset investment just rose 7.8 percent year-on-year in the initial eight months of this year, a fresh record low.
After seasonal adjustment, activity indicators evidently illustrated a weakening momentum. The continued moderation in activity data implies that market has to be prepared for some downside risks facing the Chinese economy, noted Commerzbank in a research report. Therefore, the Chinese economic growth is expected to moderate further in months ahead.
At 16:00 GMT the FxWirePro's Hourly Strength Index of Chinese Yuan was bearish at -92.8182, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 22.9734. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
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