Chinese CPI/PPI preview – what to expect in AUD/USD?
By FXStreet FXStreet (Guatemala) – AUD/USD has been in a consolidated phase at the start of the week and oscillating around the midpoint of the 0.70 handle in the aftermath of the Nonfarm Payrolls data while markets look for the next catalyst. Today we continue with Chinese data releases for the week with CPI and PPI.
China has recently reported a record trade balance surplus with both exports and imports missing expectations and offered more evidence that the economy is slowing. Despite the recent rate cut from the PBoC, China could be headed for a hard landing at this rate and today’s October CPI’s might be expected to tick lower overall as further evidence that the economy is slowing.
October CPI’s expected at 1.5% y/y
While foreign demand is waning and China looks inwards to try and spur economic growth, China’s CPI rose 2.0 percent in August y/y, but then dropped down to 1.6 percent in September, as reported last month, when compared to a year ago and missed the expectations of a change of 1.8 percent. These cooling inflation measures are further indicating that the Chinese economy is slowing down and today the market looks for 1.5% inflation y/y.
Source:: FX Street
