By Chris Becker
The first of a brace of very important economic releases from The Middle Kingdom today, with consumer prices (CPI) and producer prices (PPI) for July just released and its a good sight if you like lower prices!
The CPI has printed at 1.8% year on year, down on the 2.2% on last months:
Whilst the PPI continues to deflate, picking up speed, now at -2.9% year on year, compared to -2.1% last month:
How have markets reacted? The mainland Chinese share markets have just opened, and they’re flat, whilst our own is steady with a few runs on the board.
The main mover is the battler – the AUDUSD – this combined with the unemployment print has sent it up almost hitting 1.06:
Later this afternoon, Chinese authorities will release the closely watched industrial production and fixed assets investment numbers for July, with retail sales thereafter.
Its a very busy day!
Chris Becker is an investment strategist at Macro Investor, Australia’s leading independent investment newsletter covering stocks, trades, property and fixed interest. A free 21-day trial is available at the site.
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