Chinese retail sales likely to have expanded strongly in April

China’s retail sales data for the month of April is set to be released tomorrow. According to a DBS Bank research report, Chinese retail sales are expected to have grown 10.1 percent year-on-year, underpinned by the rebounding online transactions.

Meanwhile, industrial production is likely to have recovered modestly because of low base effect. Also, the lengthened “Two Sessions” deferred part of the output from March to April. Such temporary rise also mirrored the recovered in export growth on a year-on-year basis in April. Yet fixed asset investment should have dropped to 7.3 percent from 7.5 percent in the midst deleveraging, added DBS Bank.

At 14:00 GMT the FxWirePro's Hourly Strength Index of Chinese yuan was slightly bullish at 72.182, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -35.0163. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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