The yuan jumped to a 16-month high as a series of fundamental Chinese data points to economic recovery. Industrial output accelerated the most in eight months in August, while retail sales grew for the first time this year as demand starts to improve. Domestic demand is growing strong as the $260bn spent overseas by Chinese tourists are now remaining in China while investors also note that China has four COVID-19 vaccines in the final stage of clinical trials. At least three of those have already been offered to essential workers under an emergency use programme launched in July.
Since June, the yuan had been under pressure testing the 20 and 40EMA but the tide has turned in the last three weeks as the RSI shows an oversold USD with no support at sight until 6.7557, a low from May 2019.
