FXstreet.com (San Francisco) - The latest round of Chinese data will also serve as risk events for AUD in the hours ahead; at 01:30 GMT for CPI and PPIs, and at 05:30 GMT for retail sales, investment, and industrial production. NAB characterizes the general tone of recent Chinese data as “encouraging,” and …
…“Perhaps as a result, analysts today expect the ‘Goldilocks’ outcome of broadly steady activity indicators but a further fall in Chinese inflation (to 1.7%y/y from 2.2% in June),” says NAB in a research note. “Such an outcome would be seen as paving the way for additional RRR and/or interest rate cuts from the PBOC – a positive for risk appetite and the ‘commodity-sensitive’ AUD.” Developments in the Chinese economy affect price behavior in AUD given China and Australia’s close trade ties.
…“Perhaps as a result, analysts today expect the ‘Goldilocks’ outcome of broadly steady activity indicators but a further fall in Chinese inflation (to 1.7%y/y from 2.2% in June),” says NAB in a research note. “Such an outcome would be seen as paving the way for additional RRR and/or interest rate cuts from the PBOC – a positive for risk appetite and the ‘commodity-sensitive’ AUD.” Developments in the Chinese economy affect price behavior in AUD given China and Australia’s close trade ties.
