Australian Dollar Ignores Mixed Chinese Data for ASX 200 Gains
- The Australian Dollar brushes off a mixed Chinese CPI and PPI report
- Prices rose 1.2% y/y in April versus 1.1% expected and 0.9% in March
- The sentiment-linked Aussie seemed more interested in ASX 200 gains
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The Australian Dollar brushed off a mixed bag of Chinese economic data during early Wednesday’s Asian trading session. Consumer prices rose 1.2% y/y in April versus 1.1% expected and 0.9% in March. This marks a second month of consecutive gains relative to the previous recording. The CPI measurement rose 0.1% on the month versus -0.3% prior.
While consumer prices were better than expected, producer prices rose only 6.4% y/y versus 6.7% forecasted. The wholesale inflation measurement has now fallen for two consecutive months having set an eight-year high in February.
Economic news-flow from China tends to have a knock-on effect on Australia due to their close trading relationship, triggering a response from the currency. Indeed, China is Australia’s largest trading partner. However, the markets appeared to be looking elsewhere.
The Aussie Dollar followed as ASX 200 futures traded higher after gapping down at the market open. The sentiment-linked currency often benefits when stock markets rally and yield-seeking investors are confident in their pursuit of return.
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