In China, industrial production grew 6.9% yoy in October, matched expectations. The figure was unchanged from September’s growth. Fixed asset investment grew 1.8% ytd yoy, above expectation of 1.6%. But retail sales rose only 4.3% yoy, below expectation of 5.0% yoy. That’s nevertheless still the strongest rise this year, as led by 12.5% growth in auto sales.
Overall, the set of data suggested that China’s economy maintained broad-based acceleration in October, which could likely continue through the rest of Q4. Policy stimulus continued to had a positive impact on both investment and industrial output. The consumer sectors were also returning to normal.
The Chinese Yuan is also maintaining its strong medium term up trend. USD/CNH has taken out 6.6699 key support level last month. 61.8% retracement of 6.2354 to 7.1953 at 6.6020 was also lost. Further decline could be seen back to 6.2354 low next.
