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

Author: Eamonn Sheridan | Category: News

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

  • expected 7%, prior 8.5%

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:

  • China's Shanghai Composite -0.2%

  • Hong Kong's Hang Seng -0.8%

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

 

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose