In addition, the oscillator has actually started to trend lower after just touching upon the oversold level, which could imply some activity ahead for the pair. The Oscillator has also reached into reversal territory with some divergence also evident within the indicator.
Stops at 0.77500 looking for around 0.73500.
The big one is, of course, the GDP
China Q1 GDP: 6.7% y/y (expected 6.7%, prior 6.8%)
At the same time we got IP, retail sales and more:
March Industrial Production +6.8% y/y BEAT
expected 5.9%, prior was 5.9%
March industrial production YTD 5.8% y/y BEAT
expected 5.5%, prior was 5.4%
March Fixed Assets (excluding rural) YTD 10.7 %y/y, BEAT
expected 10.4%, prior was 10.2%
March Retail Sales 10.5% y/y, BEAT
March Retail Sales YTD 10.3% y/y, BEAT
expected 10.2%, prior was 10.2%
And, not to ignored, a HUGE jump in loans, financing ...
New Yuan Loans CNY 1370.0bn BEAT
expected 1100.0b, prior 726.6b
Aggregate Financing CNY 2340.0Bn BEAT
1400.0b expected, prior of 780.2b
Money Supply MO y/y 4.4%
expected 4.3%, prior -4.8%
Money Supply Ml y/y 22.1%
expected at 18.4%, prior 17.4%
Money Supply M2 y/y 13.4%
expected is 13.5%, prior 13.3%
Each one of us is going to have make up his or her own mind about the veracity of this data.
It all sounds a little too good to be true.