Chinese Inflation Data Today

AUD

The Aussie Dollar mostly down against majors this morning. Asian equities finished mixed on Wednesday with the Shenzhen up 1.0% while the Hang Seng fell back -0.3%, and the ASX finished the day 0.5% in the green. Major inflation data from China in the early afternoon today, with CPI y/y expected to print at -0.5%. PPI y/y is forecasted to decline -2.6%. RBA Governor Bullock is scheduled to speak 9:30am tomorrow morning, being the first public statement since the RBA Press Conference which followed the RBA rate decision announced on Tuesday.
 

USD

AUDUSD opens flat this morning at 0.6520. The major loss suffered at the start of the week was followed yesterday by highs of 0.6540 during market open. Unfortunately, the overnight market saw the Aussie give up these gains. Four Fed member officials have publicly spoken saying that there is no urgent case for lowering interest rates, with a cut not being likely until May at the earliest. This backs Fed Jerome Powell’s preceding comments that stated that the US Central Bank is not ready to begin cuts till they are confident they are heading towards tehri targeted 2% inflation rate. US equities all traded in the green, Dow Jones +0.5%, NASDAQ +1% and the S&P 500 at +0.8%. Friday will see US Unemployment Claims print, with a forecast of a 3k decrease, followed by FOMC Member Barkin in an interview conducted by Bloomberg.
 

EUR

AUDEUR opens this morning down at 0.6053, losing 13 pips from market open Wednesday, and 24 pips from the high yesterday. German Industrial Production failed to meet expectation, again printing at -1.6% instead of the forecasted -0.4%, ending 2023 10% lower than pre pandemic levels. Eurozone equities closed in the red with the DAX -0.7% and the CAC -0.4%. After a week of soft mixed data out of the Eurozone, the German Final CPI m/m is printing on Friday.
 

GBP

AUDGBP opens this morning down at 0.5162, this is off a consistent downwards trend since midday Wednesday where Aussie was trading at a high 0.5186. The FTSE ended the day in the red closing -0.7%. Later this morning, well see the RICS House Price Balance.
 

NZD

AUDNZD continues the downwards trend and opens at 1.0666. New Zealand saw the Employment Change q/q beat expectation printing at 0.4% compared to a previous -0.1%. The Unemployment Rate edged higher to 4.0%, although falling shorter of 4.3% expectations. While easing slowly, the Kiwi labour market remains tighter than the RBNZ forecasted, reinforcing the idea that interest rate cuts will occur later than markets initially anticipated.