中国 PMIs show expansion
中国 PMIs have looked sharp this week. The latest release was Caixin Services PMI 上 Thursday, which accelerated to 57.8, marking a 5-month high. The manufacturing and services PMIs for November continue to point to expansion in these critical sectors, with readings above the 50-level, which separates expansion from contraction. What has been particularly encouraging about the November data, is that both the official and Caixin PMIs improved in November and also surpassed expectations.
中国’s impressive economic recovery, as well as a broadly-lower US dollar, have combined to propel the Chinese yuan sharply higher. USD/CNH has declined 7.3% since June, as the yuan is hovering close to its highest level since June 2018. With the Biden Administration expected to implement massive stimulus in order to boost the US economy, there is more room for the yuan to gain ground. Biden is also expected to lower the temperature of the trade war between the US and 中国, which would be a bullish development for the Chinese currency.
USD / CNH技术