China: Latest set of data surprised on the upside - Rabobank

Piotr Matys, EM FX Strategist at Rabobank, notes that the latest set of Chinese data surprised on the upside with industrial production rising 6.3% y/y in August, retail sales increasing 10.6% y/y and investment growing 8.1% year-to-date.

Key Quotes

“However, we remain sceptical about the sustainability of a recovery in China. Better than expected data also implies that the PBoC will refrain from adding more stimulus, which is negative for the markets.”