Chinese CPI on the Rise: AUD
Rowan Crosby • 1 min read
Chinese CPI has come in at 2.7% y/y ( vs expected 2.7% ) and PPI 0.6% y/y ( with expected being 0.6%). So while the number met expectations they were up on the prior in the case of CPI.
Of recent times, Chinese data has been less than impressive. As recently as this week we saw the trade balance data look a bit more positive, but overall the numbers have been poor.
There was meant to be a bit of an uptick in the CPI data this month, as food prices in China have been on the rise. So that is not necessarily a strong part of what you would like to see from the economy anyhow. Particularly as those rises come on the back of higher pork prices based on some supply shortages surrounding issues with Swine fever.
The AUD/USD is relatively flat on the release and has been ticking only marginally lower on the session.
Earlier, Australian weekly consumer confidence came in at 114.6 down from the prior 116.9. Albeit this is not a key release by any stretch.
For the time being, the Aussie looks to be holding comfortably below the important 0.7000 level and we will be watching to see how the Greenback responds to today’s CPI print in the US. This will take on even more importance given how dovish the FOMC has become in recent times.