China's Industrial Profits plunge 6.3% YoY in Dec, Aussie drops back below 0.6700

Dhwani Mehta FXStreet

The latest data published by China’s National Bureau of Statistics (NBS) showed on Monday that profits earnt by China’s industrial firms in December slumped 6.3% YoY vs. a 5.4% rebound seen in November.

Further Details (via Reuters):

Industrial profits drop to 588.39 billion yuan ($85.22 billion) in December.

For the full year of 2019, industrial profits declined 3.3% on an annual basis to 6.19955 trillion yuan ($897.96 billion), compared with the 2.1% dip in the January-November period

China wrestles with its worst slowdown in nearly 30 years and as a coronavirus outbreak disrupts supply chains.

The China proxy, the Aussie dollar stalls the rebound in response to the slump in the Chinese Industrial Profits, as AUD/USD drops back below the 0.6700 level.

The Antipodeans continue to remain weighed down by the risk-off action in the Asian equity markets, as China traders return from Lunar New Year Holidays. They also seem to ignore the PBOC rate cut announcement amid poor set of Chinese macro news.

Last hour, the Chinese Caixin Manufacturing PMI disappointed with 51.1 in January.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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