The AUD came under pressure again
09.06.2015
On Tuesday the AUD/USD pair, is trading lower after the publication of weak Chinese statistics on inflation.
The Australian dollar on Tuesday came under pressure again. After the publication of weak Chinese statistics the AUD/USD pair went back to trading at the bottom of the medium-term range.
The consumer price index in China in May rose by 1.2% y/y against the growth in April by 1.5% y/y. Based on the fact that the Bureau of Statistics of China provides a full summary of the movements in prices of goods and services, in the regions and in the big cities, the data is sufficiently objective. It turns out that today's consumer inflation in China is at the lowest of four months. Expectations for the Indicator are also very controversial.
In May CPI fell by 0.2% m/m. The rate dipped by exactly the same amount in April.
If consumer inflation in China will continue to slow down, the central bank will have to – however undesirable it could be - to soften the monetary policy. The rate of the National Bank was revised in May, as a whole since the beginning of the year it was lowered by the regulator three times.
Frankly, published statistics coming out of China is not the strongest. The producer price index in May fell by 4.5% y/y, in line with expectations. M/m the index sank 0.1%. It turns out that PPI is falling for thirty-nine months in a row.
For the Australian economy, any data from China is important - the Celestial Empire is a key trade and economic partner of the Green continent.
RoboForex Analytical Department
The Australian dollar on Tuesday came under pressure again. After the publication of weak Chinese statistics the AUD/USD pair went back to trading at the bottom of the medium-term range.
The consumer price index in China in May rose by 1.2% y/y against the growth in April by 1.5% y/y. Based on the fact that the Bureau of Statistics of China provides a full summary of the movements in prices of goods and services, in the regions and in the big cities, the data is sufficiently objective. It turns out that today's consumer inflation in China is at the lowest of four months. Expectations for the Indicator are also very controversial.
In May CPI fell by 0.2% m/m. The rate dipped by exactly the same amount in April.
If consumer inflation in China will continue to slow down, the central bank will have to – however undesirable it could be - to soften the monetary policy. The rate of the National Bank was revised in May, as a whole since the beginning of the year it was lowered by the regulator three times.
Frankly, published statistics coming out of China is not the strongest. The producer price index in May fell by 4.5% y/y, in line with expectations. M/m the index sank 0.1%. It turns out that PPI is falling for thirty-nine months in a row.
For the Australian economy, any data from China is important - the Celestial Empire is a key trade and economic partner of the Green continent.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.