Read full post at forexlive.com
December trade data from China headlines the economic and event calendar in Asia today.
A couple of things to keep in mind:
We had plenty to going on with from China last week. I posted on what I though was a clear signal from the People’s Bank of China:
A clear signal of what, you ask? I said in that post (as a big bold print in the chart attached, check it out at that link) that ‘reading between the lines the PBoC is asking to stop buying so much yuan’. That turned out to be a good take with:
After that pullback yuan has edged higher still, even in the face of a strong USD elsewhere. See screenshot at the top of this post.
Since then we’ve had inflation data from China:
Monthly CPI beat expectations at +0.2%
PPI fell 1.9% y/y, easing but still deflationary
Core inflation steady at 1.2%
Weak demand and property stress remain key drags
China’s consumer inflation accelerated in December to its fastest pace in nearly three years, while factory-gate prices remained in deflation, underscoring the persistent imbalance between improving headline prices and still-weak underlying demand.
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Back to the trade data, well US-China trade more specifically. Yesterday Trump blabbed out another tariff threat:
As I said yesterday:
Anyway, this is unrelated to the December data due today, but something to keep an eye on ahead.
This article was written by Eamonn Sheridan at investinglive.com.
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