For the past few weeks, things were calm in the Chinese economy, with only a few economic releases. However, this week, we will be waiting for new clues on where the economy is standing.
Moreover, there were some notable moves in equities and the Chinese Yuan, which keep us questioning whether this move will continue or it's another short-term play.
--Fundamentals In Focus--
Beginning this Wednesday, we will be focusing on China’s Trade Balance, which will be released at some point during the Asian session. Usually, it is announced around 01:00 GMT+.
The estimates point to a slower surplus of 292B Yuan in July compared to 294B in June of this year, which would be the first decline in surplus after rising for four months in a row.
Exports set to slow down to 10.9%, which would be the first slowing down in three months, but likely to remain the 3rd highest reading since 2015.
Imports are also expected to ease back for the first time in two months, back to 16.6% down from 17.2%. Yet, this would be the longest increase in YoY Imports since 2010.
On Thursday, all eyes will be on a collection of inflation figures, including Consumer Prices and Producer Prices.
The YoY CPI is expected to remain stable at 1.5%, which would be the third monthly stabilization in a row and the highest reading since January of this year. MoM CPI is expected to post the first monthly increase in two months and the biggest MoM increase since January.
Yet, the PPI is expected to tick higher for the first time in five months up to 5.6% in July compared to 5.5% in June.
Earlier next week, we'll focus on Industrial Production, Fixed Asset Investment and the YoY Retail Sales on Monday, which likely to have the biggest impact on the markets, especially if the numbers come in with a notable change.
--Chinese Yuan At The Highest Level Since October 2010--
Read more: https://www.orbex.com/blog/2017/08/china-in-focus-this-week/