China’s June came in at 50.9 vs. 50.5 consensus and the was 54.4 vs. 53.6 consensus.
Cyclical currencies should outperform in an environment where investors are more focused on improving activity data than on more medium- to long-run structural concerns that are proving to be a headwind for high-carry FX Asia these days.
The is strengthening on back to back domestic data beats which continue to power the economic differentiation factors in the local currency market sentiment where the could now outperform given traders proclivity to go long CNH on the Asia cross.
The global economy unambiguously remains in a cyclical upswing, except for pockets of weakness. In the US, business activity surveys and recent housing data have propelled surprise indices to new highs. However, further declines in US real yields ( -0.72%) imply greater pessimism around the long-term systematic outlook, which continues to argue for gold as a critical…