China's CPI rose by 2.3%
China's consumer inflation remained modest in April, while producer prices' four-year slump moderated as commodity prices rebounded, easing concerns about deflationary risks to the world's second-largest economy. Strong March data had raised hopes the economy was bottoming out from a prolonged slump -- possibly allowing the People's Bank of China (PBOC) to take its foot off the gas -- but mixed April data so far and surging debt levels have fueled doubts about whether any recovery will prove sustainable.
"With regards to monetary policy, we do not expect inflation to play a large part in the central bank's thinking," said Chester Liaw an economist at Forecast in Singapore. "Inflation prints are not too high to dissuade them from further easing if need be, and not too low to warrant loosening."
The consumer price index (CPI) rose 2.3% in April from a year earlier, largely due to a spike in food prices, particularly pork. The reading has now been at the same level for three months in a row, and April defied market expectations for a slight pick-up in inflationary pressures. Non-food prices rose just 1.1%, ticking up from March, but again not showing a build in price pressures that would be expected if the broader economy was suddenly perking up.
EOn a sequential basis, the producer price index (PPI) rose for the second month in a row.
Aussie is currently being traded around 0.7330 area. Pair is likely to find support around 0.7280 handle and resistance above 0.7380 level. There will be no data releases later today.
- Popular
-
UK still likely to leave the EU with a negotiated agreement, says Number 10
A successful deal with the European Union remains the “most… -
Sentix Investors Confidence rose to 14.7 in August
The summer heat in Europe is also causing economic temperatures… -
German factory orders -4.0% seasonally adjusted on the previous month
Based on provisional data, the Federal Statistical Office (Destatis) reports… -
China's July exports growth still seen holding up despite U.S. tariffs: Reuters poll
China's exports are expected to have maintained solid growth in…
Tags
aud/usd2605
boe106
brexit96
china122
cpi147
daily fundamental2278
daily technical2199
ecb113
eur/usd1497
eurozone88
EurUsd1227
forex8896
gbp/usd1447
GbpUsd1111
gdp95
industrial production106
inflation73
interest rates219
ppi93
rba91
resistance71
retail sales125
support71
trade balance108
uk188
unemployment claims160
unemployment rate122
usd1004
weekly fundamental565
weekly technical419