Ok, heads up, it’s time for another yuan record.
On Thursday we noted that the onshore yuan had its best month since 2005 when it was revalued and we also reminded you that its offshore counterpart was riding a 12-day win streak.
Well on Friday, that streak continued. It’s now at 13, following a beat on the August Caixin PMI (51.6 vs 51.0 estimate):
From where I’m sitting that looks like it ties an all-time record in terms of consecutive days of gains (feel free to correct me on that if I’m wrong).
With the Party Congress coming up, the data showing no real signs of rolling over in a dramatic enough way to derail this, and the PBoC not fighting it, 6.50 doesn’t look far-fetched – at all.
Note: the NFP report could change this, but at this point, there’s no bucking the trend.