Fears are growing that China is starting to experience deflation, with monthly inflation data released within hours showing an annualized deflation of 0.3%.
➡️ China's CPI (inflation) data released earlier showed that China's inflation has turned deflation, with an annualized contraction of 0.3% , although a deeper contraction than 0.4% was expected. That is could raise nerves over a tightening of global risk appetite and demand , with markets already in a nervous mood.
➡️ The US dollar does not have a convincing long-term trend and currently seems stuck in between support at 101.56 And resistance near 102.375. The resistance level held effectively a few hours ago and the US dollar is now falling gently.
➡️ Global stock markets are generally lower over the past day . The HSI And the Nikkei 225 index both close lower today.
➡️ WTI crude oil looks more bullish after the price made a strong rebound yesterday to close very close to its recent 4-month high price . Trend traders might find it interesting to get involved here on the long side.
➡️ Nn the Forex market, the US dollar has been the weakest major currency since the Tokyo open, with the Australian dollar the strongest, bringing into focus the AUD/USD currency pair. However, the movements are quite small and not very significant even on an intraday basis.
➡️ New Zealand inflation expectations data stood at 2.83%.
➡️ Today may be a quiet day in the market as no high-impact data releases are expected today.
Credit by DailyForex.com