The Australian Dollar was supported by the Chinese statistics. Overview for 09.12.2016

09.12.2016
In the late Friday afternoon, the AUD/USD pair is trading upwards after China published the statistics on the inflation.

After quite contradicting trading on Friday morning, the Australian Dollar moved to the positive zone in the evening. The current quote for the instrument is 0.7493.  

In the morning, the market was focused on the weak report on the Home Loans in Australia, which put the heat on the Aussie. However, very quickly investors turned their attention to the statistics from China, which contained a lot of interesting data.  

The Inflation Rate in China added 0.1% m/m this month after losing 0.1% m/m in October. On YoY, the CPI increased by 2.3% after being 2.2% the month before. Today’s annual report showed the highest number over the last 4 and half years. The rate of price increases matched expectations and the major contribution was made by fruit and vegetable products.

The PPI added 3.3% y/y in November against expectations of 2.2% y/y. On MoM, the indicator expanded by 1.5% after increasing by 0.7% the month before.

Several opinions have already appeared that China is entering a new inflationary cycle, but one shouldn’t put the cart before the horse. At first, it’s better to wait for the tendency to be confirmed. For the Australian Dollar, any positive news relating to China is good, because this country remains Australia’s key trade and economic partner.
 
RoboForex Analytical Department

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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.