Chinese data is out today and we have seen a small miss in the monthly figure and the other data points mostly in line.

MoM CPI came in at -0.4% vs -0.2% exp, while the YoY was stable at 2.3%. While PPI was 0.2% which was as expected for the monthly figure.

There was a bit of a jump in CPI which was due to some higher food prices, so we probably need to take this figure with a grain of salt anyhow.

Recently most of the news from China has been poor to say the least. However, there have been some green shoots here and there with a positive manufacturing result two weeks ago.

Inflation isn’t probably the main focus of the Chinese economy by any stretch with growth in other areas really the key indicators.

The AUD/USD is little changed on the session or on the news. We saw some upside overnight as the USD weakened a touch.