ForexLive Asia FX news wrap: China retails sales data shows a huge miss

Forex news for Asia trading on
Wednesday
15th
September 2021  

‘Activity’ data from China
today for August showed a miss on expectations, most notably for
retail sales which came in at 2.5% growth y/y

Industrial
production and investment for the month also missed, but its the
consumer/domestic sector, as reflected in the retail sales miss, that
is the concern in these data. Officials cited the renewed COVID-19
outbreaks and also widespread flooding for the miss. And, they have a
point. I think the bigger takeaway is that other economies around the
globe are seeing similar (outbreaks and weather events – Germany
floods for example) and perhaps there is a bigger picture impact than
just in China.

Stockmarkets
in China had been slumping prior to the data release and they are
posting losses as I update:

Japan’s
Nikkei +0.7%.

China central bank issued a 600bn yuan Medium-term Lending Facility (MLF). An MLF of 600bn was maturing today so a rollover. 1-year term at 2.95%, an unchanged rate. 

Across
FX there is not a lot of net change. AUD and NZD lost ground, but as I update have recovered somewhat. EUR, GBP, CAD are all barely moved from NY closing levels. USD/JPY popped above 109.70, dipped under 109.60 and is now barely net changed on the session also. 

AUD/JPY

audyen chart

 

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