Yesterday I read an article in the NY Times entitled "China's Economy Slowed a Bit in the 2nd Quarter." The article reported "The Chinese economy expanded at an annual rate of 9.5 percent during the second quarter, the National Bureau of Statistics reported on Wednesday, a figure that, for all its strength, represented a slowdown from the sizzling pace of previous quarters, and underlined the challenges now facing policy makers in Beijing."
The Atlanta Journal-Constitution reported the same Associated Press (AP) story but entitled it "Strong Economic Growth in China Weighs on Dollar." This article reported, "The dollar is falling against most major currencies as investors were reassured by China's report that the world's second biggest economy grew at a relatively strong pace in the second quarter."
So, the NY Times reports that China's economy is slowing down but the AP reports that the Chinese economy is growing at a strong pace. Which are we to believe?
Reporting in the financial community is often flawed by contradictory opinion and shoddy analysis. The same is true of technical analysts who interpret currency charts. One analyst will report that the dollar will rise while another is predicting the demise of the dollar. Again, who are we to believe?
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