In its latest publication, the People’s Bank of China (PBOC) said that China's economy gradually recovering, as the overall demand improves from a low level.
“Will not experience high inflation or typical deflation. “
“China's overall demand is recovering fast from a low level.”
“Expect output gap to narrow in H2, help stabilize prices.”
“Consumer inflation expected to ease on a quarterly basis this year, chances of a rebound not high.”
“Prudent monetary policy will be more flexible and appropriate.”
“China's year-on-year falls in producer prices expected to narrow as investment and consumption recovers in H2.”
The upbeat comments from the Chinese central bank failed to lift the market sentiment, as coronavirus fears continue to haunt, allowing a minor bounce in the US dollar across its main competitors.
AUD/USD clings onto the 0.6900 level, modestly flat on the day.
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