Forex news for Asia trading on
‘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
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.
in China had been slumping prior to the data release and they are
posting losses as I update:
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.
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.