We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bearish
USD/JPY
Bearish
Gold
Bullish
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/T63Op8nFm6
  • Today's FX option expiries - $EURUSD 1.0825-35 (1.1bln), 1.0850-60 (900mln), 1.0875-80 (1bln) - $AUDUSD 0.6675 (1.4bln) - $EURJPY 119.90 (873mln)
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.65%, while traders in USD/CAD are at opposite extremes with 69.06%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/HhJsadutsV
  • Commodities Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.12% Gold: -0.73% Silver: -1.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/lUE1dizUX7
  • Missed today's #AUDUSD weekly outlook webinar? See the recording here - https://t.co/8qO72jQ09n Topics included: - #Coronavirus fears' impact on AUD price action - Aussie Dollar technical analysis - #RBA, #Fed monetary policy outlook
  • The AB=CD pattern is simple once you know how to spot it and draw the proper Fibonacci retracements. Make your trading strategy as simple as ABCD here: https://t.co/AKmlmaAZBS https://t.co/SQidi62RGj
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.17% 🇦🇺AUD: 0.12% 🇨🇭CHF: 0.07% 🇯🇵JPY: 0.04% 🇪🇺EUR: 0.01% 🇳🇿NZD: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/f8hmtUd9pl
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: US 500: 0.95% Wall Street: 0.88% Germany 30: 0.80% France 40: 0.76% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/6JMsIfRGtb
  • EUR/USD Technical Analysis: Euro Drop May Be About to Resume - https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2020/02/25/EURUSD-Technical-Analysis-Euro-Drop-May-Be-About-to-Resume.html #EURUSD #technicalanalysis https://t.co/mn0q0xw02x
  • What are the six different types of stocks every trader should know? Find out from @WVenketas here: https://t.co/yO3JalkqUU https://t.co/ihHwmPxZAk
Lower Inflation in China Fails to Move AUD, NZD Amid Eurozone Focus

Lower Inflation in China Fails to Move AUD, NZD Amid Eurozone Focus

2011-12-09 02:08:00
Lujia Lin,
Share:

THE TAKEAWAY: Chinese inflation figures exhibit significant slowdown > Disinflation could mean looser monetary policy in China, but markets remain primarily focused on EU summit > AUD, NZD flat

The Australian and New Zealand Dollars were largely unchanged after China released CPI figures indicating a marked deceleration in inflationary pressures. Both currencies briefly moved higher by no more than 15 pips immediately following the release before retracing; despite the possibility of further monetary easing in the two nations’ top trading partner, markets remain focused on the EU summit, which continues into Friday.

Lower_Inflation_in_China_Fails_to_Move_AUD_NZD_Amid_Eurozone_Focus_body_Picture_5.png, Lower Inflation in China Fails to Move AUD, NZD Amid Eurozone FocusLower_Inflation_in_China_Fails_to_Move_AUD_NZD_Amid_Eurozone_Focus_body_Picture_6.png, Lower Inflation in China Fails to Move AUD, NZD Amid Eurozone Focus

Charts generated using Strategy Trader

According to the National Bureau of Statistics, overall consumer prices in the world’s second-largest economy rose 4.2 percent YoY in November, a marked slowdown from October’s 5.5 percent increase and lower than consensus estimates of 4.5 percent. The lower rate represents a continuation of an overall disinflationary trend since the gauge peaked at 6.5 percent in July. Food-price inflation fell to the single digits, rising 8.8 percent, while consumer goods prices rose 5 percent. Producer prices also decelerated significantly, falling to 2.7 percent from 5 percent a month earlier.

Friday’s inflation data is largely in line with signs that the Chinese economy is cooling amid an unresolved European debt crisis, stress in the property market, and concerns about the health of the domestic banking sector. The effects of this slowdown are already highly visible; the Chinese manufacturing PMI indicator in November moved into contraction territory for the first time since 2009, while the non-manufacturing PMI plunged to 49.7 from 57.7. Meanwhile, the Citigroup economic surprise index for China – a measure of whether data releases surprised on the upside or downside – has been negative since October and continues to trend downward.

In response, Chinese policymakers on Nov. 30 cut the bank reserve requirement by 50 bps; the first cut since 2008. Interest rate cuts could follow, as priced in by Chinese rate swaps. Two-year swaps on the 1-year deposit rate – a measure of what markets expect the PBOC’s benchmark rate to average over the next two years – currently trade at 3.19 percent; by comparison, the current PBOC deposit rate is 3.5 percent.

Despite the economic slowdown in the two South Pacific economies’ top export market, China is expected to avert a “hard landing”, and demand for raw materials and mining investment will likely remain relatively robust. In the near term, risk trends tied to Eurozone developments – especially amid signs of discord over possible EU treaty amendments to impose sanctions on nations with excessive deficits – and monetary policy in Australia and New Zealand will continue to play a paramount role in shaping the Aussie and Kiwi.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.