China’s PPI Contracts for Sixth Straight Month in December 2019 - Forex News by FX Leaders
USD/cNH trading steady following the release of China's PPI, CPI

China’s PPI Contracts for Sixth Straight Month in December 2019

Posted Thursday, January 9, 2020 by
Arslan Butt • 1 min read

Producer prices in China declined for the sixth consecutive month during December on the back of weakening demand amid the US-China trade war. Producer prices declined by 0.5% YoY during December, worse than the 0.4% decline forecast by economists.

The figure, however, was better than in November when PPI had posted a 1.4% decline YoY. Meanwhile, CPI was up 4.5% YoY in December, holding steady from November. Economists were expecting a gain of 4.7% in consumer price index for the month.

Following the release of this news, the Chinese yuan has not shown much movement against the US dollar. At the time of writing. USD/CNH is trading somewhat steady around 6.926.

Markets are now likely to shift their focus towards the upcoming signing of the phase one trade deal between the US and China. The two countries are scheduled to sign the partial trade agreement on January 15 in Washington.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments