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Following yesterday’s disappointment in China’s trade balance where exports contracted 2.7% year-on-year in April (while imports enjoyed a rise of 4.0% YoY, reflecting the negative outlook for smart devices and automobile sales globally, while China is importing more crude oil for domestic use), today, we are receiving China the CPI and PPI which are now out.  

April consumer and producer prices data, where the consensus 2.5%yr on CPI and 0.6%yr for PPI were higher than the prior readings of 2.3% and 0.4% respectively, food prices were a particular focus considering how China has been trying to contain a deadly African swine fever epidemic in pigs, the data arrived as follows:

  • CPI: 2.5% Y/Y
  • PPI: 0.9% Y/Y

AUD/USD is a few pips  higher to 0.6980.