9 Jun 2015
More easing ahead from the PBoC – SG
FXStreet (Barcelona) - Kit Juckes of Societe Generale, presents the case of China’s economic problems and its impact on global inflation and the antipodean currencies.
Key Quotes
“Chinese inflation figures (CPI at 1.2% y/y,PPI at -4.6%) undermined Asian equities, supported the yen and somewhat pervesely, allowed the KRW to bounce in the process. Chinese inflation is a surprisingly good barometer of both Chinese and global economic activity, and the long-term correlation with AUD/USD reflects that.”
“China's problems are a far bigger long-term issue for financial markets, global inflation, demand for raw materials, regional economic trends etc etc, than whether Obama did or didn't say something.”
“There will be more easing from the PBoC, but there will be more global economic sluggishness too and in due course, more AUD and NZD weakness.”
Key Quotes
“Chinese inflation figures (CPI at 1.2% y/y,PPI at -4.6%) undermined Asian equities, supported the yen and somewhat pervesely, allowed the KRW to bounce in the process. Chinese inflation is a surprisingly good barometer of both Chinese and global economic activity, and the long-term correlation with AUD/USD reflects that.”
“China's problems are a far bigger long-term issue for financial markets, global inflation, demand for raw materials, regional economic trends etc etc, than whether Obama did or didn't say something.”
“There will be more easing from the PBoC, but there will be more global economic sluggishness too and in due course, more AUD and NZD weakness.”