Chinese economy likely to have grown 6.7 pct in Q3, says Wells Fargo

The Chinese economy is expected to further slowdown in the years ahead, according to the Wells Fargo research report. But the second quarter result was slightly stronger than what markets had anticipated, growing 6.9 percent on a year-earlier basis. The markets are likely to have an opportunity to measure the staying power of the Chinese economy again, particularly if they can keep the growth rate stable at the 6.9 percent rate they registered during the second quarter, noted Wells Fargo.

Even if there have been some rebounds in the Chinese PMI manufacturing index, the improvement has not mimicked the solid rebound that was seen in the U.S. and in the euro area and therefore the Chinese economic growth is still expected to slowly weaken.

“We expect a rate of growth of 6.7 percent during the third quarter of the year”, added Wells Fargo.

At 19:00 GMT the FxWirePro's Hourly Strength Index of Chinese Yuan was highly bullish at 133.256, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 37.1776. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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