FXstreet.com (Barcelona) - After a rather uneventful Chinese PMIs today, which has triggered the excuse to kick-start what might be a correction period for the AUD/USD ahead of the FOMC later today (18.15GMT), there has been additional Chinese data published worth writing a few lines about.
The release, widely overlooked, refers to China’s rail cargo volume growth, which just turned negative in June. This announcement would not be that relevant if it wasn't because China’s vice premier Li Keqiang, who has been reportedly criticizing in the past the inaccuracy of China’s GDP numbers, is said to be relying more on electricity consumption, rail cargo volume, and banking lending to gauge the status of the economy.
As reported by Also sprach Analyst Founder Zarathustra: "The rail cargo volume growth on a year-on-year basis has just turned negative in June. Total volume of freight handled by railways amounted to 315 million tonnes, fell by 3.1% compared to a year ago. The year-on-year change has turned negative for the first time since September 2009."
If Li Keqiang is correct about the usefulness of rail cargo volume, "this suggests that the economy has probably not bottomed in the second quarter" Also sprach Analyst Zarathustra adds.
The release, widely overlooked, refers to China’s rail cargo volume growth, which just turned negative in June. This announcement would not be that relevant if it wasn't because China’s vice premier Li Keqiang, who has been reportedly criticizing in the past the inaccuracy of China’s GDP numbers, is said to be relying more on electricity consumption, rail cargo volume, and banking lending to gauge the status of the economy.
As reported by Also sprach Analyst Founder Zarathustra: "The rail cargo volume growth on a year-on-year basis has just turned negative in June. Total volume of freight handled by railways amounted to 315 million tonnes, fell by 3.1% compared to a year ago. The year-on-year change has turned negative for the first time since September 2009."
If Li Keqiang is correct about the usefulness of rail cargo volume, "this suggests that the economy has probably not bottomed in the second quarter" Also sprach Analyst Zarathustra adds.
