China's August updates on industrial output and retail sales show a mounting recovery of the world's 2nd biggest economy that was first to get hammered by this year's pandemic shock, but also first to rebound. Not only has Chinese industry benefitted from the rebound around the world, but annual growth in domestic retail sales turned positive last month for the first time this year. The positive surprise catapulted the offshore yuan exchange rate to its best levels against the dollar since May last year - and, as Saxo Bank's team point out, breaching its 200-week moving average for the first time in more than two years. But a rising currency carries risks for such a major exporting country - not least one in the middle of a trade, technology and diplomatic standoff with the world's largest economy.
Chart by Ritvik Carvalho and commentary by Mike Dolan.
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