News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Gold: 0.31% Oil - US Crude: -0.18% Silver: -0.50% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/AS3CtSNbr4
  • Fed's Evans: - Tepid April jobs report was a 'head scratcher' - Welcomes wage growth as sign of a healthy jobs market - Fed has room to overshoot inflation target - 'It will be a while' before US has made enough progress to talk about tapering
  • US 10-Year Treasury yield extending to session highs and steering the Nasdaq to new lows of the day $NDX $QQQ $NQ_F https://t.co/ReXcLVpGy8
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 88.77%, while traders in Wall Street are at opposite extremes with 78.12%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/wI1kMvJkwU
  • The price of gold extends the series of higher highs and lows from the previous week even though the 10-Year US Treasury yield retraces the decline following the US Non-Farm Payrolls (NFP) report. Get your $XAUUSD market update from @DavidJSong here:https://t.co/kyW7ukihdY https://t.co/keRXgNxmyp
  • Fed's Evans: - Very optimistic US will get back to strong job numbers - Still expects unemployment to fall below 5% this year $USD $DXY $TNX
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.67% US 500: -0.15% France 40: -0.18% Germany 30: -0.20% FTSE 100: -0.27% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/f9gTcPN7Ev
  • EUR/USD holding proven support level. Pullback may be over, but hurdles yet to cross. Get your $EURUSD market update from @PaulRobinsonFX here: https://t.co/o6LAHTn29c
  • GBP/USD continues its march higher as the pair breaks above 1.41 for the first time since February $GBPUSD https://t.co/UVswAJplrS
  • Heads Up:🇺🇸 Fed Evans Speech due at 18:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-10
Chinese Prices Depressed as Stimulus Lacks Efficacy, Aussie Unmoved

Chinese Prices Depressed as Stimulus Lacks Efficacy, Aussie Unmoved

Gary Kerdus,

THE TAKEAWAY: Chinese inflation remains depressed > Recent PBOC stimulus measures could fail to meet growth expectations spelling trouble for Aussie exports > Australian dollar unchanged

The Australian dollar was little changed versus its major counterparts as prices for both consumer and producer goods in China remain depressed. Home loans in Australia increased by a modest 1.8 percent in August while investment lending receded by 0.8 percent highlighting shaky confidence among entrepreneurs as the European debt crisis and spillover effects from slowing China dampens Aussie export-growth prospects.

Prices in China for consumer related items increased by 1.9 percent whereas prices for industrial products fell by 3.6 percent in September providing further confirmation that the world’s second largest producer continues to grind slower. A closer look into the prevailing economic trends would suggest the recent attempts by the Peoples Bank of China to stimulate via reverse repo operations could be seen as an effort to fill the gap left by foreign capital exiting the troubled region. Investors began running-for-the-doors around December 2011 as highlighted by negative foreign direct investment providing ample explanation behind the reversal in net capital flows. To combat the ‘flight’ the PBOC filled the gap by introducing stimulus in May 2012 and has extended support through to current day. Flagging inflation figures would suggest the current monetary operations have had little effect on stimulating growth.

The Australian currency may not perform well under such pressing conditions as China is the largest consumer of Aussie exports. Moreover, according to Credit Suisse data, markets appear to be pricing in a 84 percent probability of a 25 basis point reduction to rates by the Reserve Bank of Australia during the next meeting on November 6.

Prevailing Trends in China:

Chinese_Prices_Depressed_as_Stimulus_Lacks_Efficacy_Aussie_Unmoved__body_Picture_4.png, Chinese Prices Depressed as Stimulus Lacks Efficacy, Aussie Unmoved

Data Source: Bloomberg

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

DISCLOSURES