Chinese industrial production for May turned out to be better than expected and retails sales for the same period remained robust as well. However the data, which was issued through the course of last night, when compared to previous remained very much in line.
China is Australia’s biggest trade partner and hence the Aussie tuns out to be the best proxy for trading Chinese events. In fact the data released overnight helped the Aussie tick higher but support seems to have already fizzled out at the time of writing.
Sentiment was rather mixed in today’s Asian session, with the major in indices manifesting mixed performances. Strongest sentiment drivers so far today have been the Chinese data, but also the news surrounding Oil prices. Oil prices declined after Opec reported an increase in production despite its efforts to scale it down and concurently data also showed that there was a build up in US crude stocks.
The US dollar index (DXY) is entering what seems so far to be its 3rd day of consecutive declines with the index having a level of 96.96 at the time of writing after opening the week at 97.27.
During today’s US session we are expecting US CPI and Advance retail sales, both considered to be potential high impact data, but the cherry on th cake will probably be the FOMC rate decision later this evening.
