This morning, Chinese inflation data widely met expectations. The Australian dollar, and the benchmark AUD/USD, shrugged the report off.
The official Chinese consumer price index (CPI) rose by 1.6 percent, annually, for the month of September. That was down from the August print of a 1.8 percent increase. However, it was in line with analyst expectations. Factory gate prices, or the produce price index (PPI), had a bit more life in them. The PPI was up 6.9 percent. This was a bit better than the forecast of a 6.4 percent increase. This signals that Chinese domestic demand remains strong. This is seen as helping firms which have survived China’s economic reform. This means some industries are increasing prices.
China also reported solid economic credit growth numbers. This means that the world’s second largest economy delivered another strong set of economic data. However, it still is not enough to erode doubts of sustainability. These doubts come after last week’s weaker than expected service sectors snapshot. However, at least for now, that seems to be the only cloud on China’s horizon. Policy makers, in Beijing, may be justified in feeling at pleased with themselves. The communist party is getting ready to gather in Beijing this week for the annual Communist Party National Congress.
Australian Dollar ignores Chinese Data Again
The economic data out of China was not strong, or weak enough, move the Australian Dollar. Economic data, from China, can often move the Aussie. China is a strong importer of Australian raw material exports. However, the Australian dollar Forex market may be more focused on domestic economic data on the horizon. They will be released later in the week. The biggest release, for the week on the economic calendar for the Down Under is the official employment data scheduled for release on Thursday.
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