Author: Dennis Li
Chinese industrial output unexpectedly weakened to 4.4% in August, the slowest pace since February 2002, receding from 4.8% in July. Separate data released on the same day showed that retail sales continued to slow to 7.5% in August. The latest series of poorer-than-expected data will likely reinforce views that China is to release further measures to boost its economy.
Oil prices continued its rally, up around 14% overnight at US$ 62.50 per barrel, the biggest intra-day gain since the Gulf War. Yemeni rebels after years of attacks from Saudi Arabia have claimed responsibility however authorities are still trying to confirm. The USD rose against a basket of currencies on Monday as President Trump authorised the use of an emergency crude stockpile in response to attacks on Saudi Arabian refining facilities.
Beyond oil, currency markets are waiting for the outcome of central bank meetings in the US and Japan on Thursday. The AUD overnight remained steady against the USD while up by more than 0.80% against the EUR.
Investors will focus on the RBA September meeting minutes released 11.30am this morning to get more insight about the next central bank’s move to strengthen Australian economy.
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