Cookies help us deliver our services. By using our services, you agree to our use of cookies.
Learn more Got it
Dakar 2017
Roboforex is an official sponsor
of "Starikovich-Heskes Team"
at the Dakar 2017
Home / Analytics / Forex analysis & forecasts / Forex Fundamental analysis / Chinese statistics prevented the Aussie from rising
Ask a question
Did not find the information you need? Ask your questions and get answers online!
Enter chat
Or enter your phone number in the form below and we will call you right away.
Call back

Chinese statistics prevented the Aussie from rising

The Australian dollar would have continued to strengthen with support from its statistical data, but this was prevented by the Chinese statistics.

On Tuesday afternoon, the AUD/USD pair is trading around the level of 0.7050. The increase compared with the previous trading day is minor, although the Australian macroeconomic calendar gave the instrument a reason for continuing to strengthen. However, in the morning, Chinese statistics came out at the same time as the Australian statistics - and they are not very positive.

The consumer price index in China increased by 1.3% in October y/y vs an increase of 1.6% in September and an expectation of growth by 1.5%. M/m prices have slipped by 0.3% despite the fact that in September they rose by 0.1%.

Inflation perfectly illustrates the changes in the consumer interest. Demand for goods and services is weak, despite efforts by the PBOC to stimulate the banking sector. The components of the inflation report shows that the price of food significantly reduced. This is a strong signal, and it may be carry a long-term fundamental character.

China's producer price index, in turn, last month went down by 5.9% y/y, unchanged compared with September figures. The forecast assumed a slight improvement of the indicator to -5.8%.

Australia published data this morning, according to which the index of business confidence from NAB for October fell 2 points with 5 points before. With this, business conditions kept the previous figure of 9 points. Apparently, the sentiment of entrepreneurs and business people are the result of the fall of trade with China and Europe, so their decline is not surprising.
RoboForex Analytical Department

Dear reader!

Without authorization, you can view no more than two reviews per day and no more than 10 per month. To continue reading analytical reviews, register or login to your Members Area.


Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.