Here’s a heads up about the important Chinese data that is out around lunchtime today. Amongst the raft of data to be released is the GDP data. Chinese growth is increasingly important to everyone on the planet as our beloved Central Bank Governor pointed out in New York two nights ago. The chart below shows the relationship between the Chinese Leading Indicator and GDP with the little pink line our guess (that’s all it is not a forecast) of the probable deceleration of the GDP data to be released.
This is important for us here in Australia obvioulsy because of the importance of the Chinese growth engine to Australian growth and interestingly Chinese growth also has a really strong impact on German exports. China is clearly trying to slow their economy and the evidence is that its working.