ForexLive Asia FX news wrap: New cases in China rise again, another lockdown imposed

News

It was a steady sideways day for most of major FX with small ranges and not a lot of net change. GBP, EUR, NZD, CAD are all a few tics up against the US dollar while USD/CHF and USD/JPY are more or less unchanged.



The focus was once again on China today, both news and data flow.

December inflation data, CPI and PPI, from China showed lower than expected and lower than November for both. Chinese stocks generally gained on the session (as I post), lower price pressures should translate into more breathing space for stimulus, should the PBOC and other authorities in China go that path (which seems likely).

On the news front it was a day of rising COVID-19 cases again and also a new lockdown was announced related to the outbreak in Henan province (see bullets above).



Still to come today, US CPI data for December – preview above.

AUD waiting game for the US CPI:

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