Inflation data from China over the weekend revealed consumer prices falling at their fastest in three years (the y/y drop was the fastest since November 2020): Deflation at the wholesale price level continued also (PPI). The deflationary pulse in China is a reflection of weak consumer demand, alongside factors such as falling global energy prices, the dissipation of the post-opening travel boom, a glut in supply, mounting local government debt, and the implosion of the property sector. All of this is leading to Chinese consumers pulling back. Last week: Hopes persist for more stimulus from China. The next event eyes by traders that might give us a chance of stimmy is the Chinese Communist Party Politburo holding the annual “Central Economic Work Conference” later in December. This graph is from the ForexLive economic data calendar, . Chinese deflation is acting as headwind to the China trade, it’s a factor in the slide in the Australian dollar this year, for example./

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