Chinese CPI/PPI preview – what to expect in AUD/USD?
By FXStreet FXStreet (Mumbai) – AUD/USD has been under pressure over the past few trading sessions, with the recent decline mainly attributed to the sliding commodities’ prices, especially oil. Oil prices fell to the lowest levels since early 2009 on Tuesday as markets continue to weigh Friday’s OPEC decision of refraining from production cut. Adding to further downside, China reported weak trade data, with the Chinese exports falling 6.8% y/y in Nov and imports sliding 8.7%, leaving the trade surplus to $54.10 billion against October’s record high of $61.64 billion. At the moment, the Aussie extends the recovery from below 50-DMA and regains 0.72 barrier, consolidating previous heavy losses before another set of key macro releases from China – CPI and PPI reports.
China is battling with weak consumption as reflected by lower price pressures, while the economy moves towards a consumer led growth model. The Chinese authorities rolled out a number of stimulus measures in recent times to stimulate growth in the dwindling economy. The latest one being, injecting 10 bln Yuan through 7 day reverse repos while China’s central bank has already slashed interest rates six times this year apart from multiple releases of bank reserves.
Nov CPI to …read more
Source:: FX Street
