Yuan Surges To Strongest Level Since October – Here’s Why
Ok, so you should note that the onshore yuan strengthened past 6.70 for first time since October on Tuesday.
Here's the chart:
Some folks were a bit confused by that, given that July export and import growth decelerated and missed estimates widely:
But remember what we said just after the numbers hit. To wit:
Generally speaking, the report could obviously have been better, but you have to make sure and view this in the context of the monumental balancing act Beijing is trying to pull off
The dollar is trash because the US is dysfunctional and not economically viable. China is the largest economy in the world on a PPP basis (all that matters in reality), the fastest growing large economy, increasingly free markets and improving rule of law, and everything falling into place that makes it the inevitable financial capitol of the world come 2030. The torch has been passed – Britain to US to China.