AUD/USD Watching US Election as China CPI Meets Forecasts
- China CPI notches up another solid on-year rise
- It’s now risen consistently since August’s low point
- FX market is understandably fixed on the US
More evidence that Chinese consumer price inflation is picking up passed by an Asian currency market focused on US election results.
Official data released Wednesday showed the consumer price index up 2.1% on-year in October. That was as-expected by the market and above the 1.9% seen in September.
Annualized CPI has picked up every month since its recent nadir of 1.3%, hit in August.
However, there was a wobble in the monthly figure. That fell by 0.1%, against expectations of a flat result and September’s 0.7% rise.
Producer prices rose 1.2%, which was better than expected and the series best showing since late 2011.
Analysts had expected a consumer price pickup because of upward food-price pressure. Producer price strength was driven by rising international commodity prices, and, while rises are welcome after months of contraction, it may hit industrial profit in the months ahead.
The “Aussie” is the foreign-exchange market’s favorite liquid China proxy, thanks to Australia’s close export ties with the world’s number-two economy.
However as US election results trickle in, it’s tough to see any of Wednesday’s economy data overriding the wait to see who will be the US’s 45th President.
Newsires reported rather low volume across both FX and equity as trade got under way in Asia. It seems that those who don’t have to play are keeping clear until the US result is called.
AUD/USD - No break from US election-watching on China CPI
Chart compiled using TradingView
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.