Since the financial crisis, the global investors look at China’s every move. Economic data in China in April, the production price index increased by 6.8% per annum (expected to increase 6.5%); retail sales rose an annual rate of 18.5% (expected 18.2%); industrial production rose an annual rate of 17.8% (expected to increase 18.5%).
Most interesting, is China’s consumer price index (CPI), in April increased by 2.8% (expected 2.7% rise in March, up 2.4%), for the 10 months since the high; during the period increased by 12.8% in property prices, new Loan growth was recorded higher than the expected 7,740 billion Yuan. Data reflect the increased inflationary pressure in China, the People’s Bank increased interest rates and promote the future revaluation pressure.
U.S. economy has passed the worst moments
China’s April CPI growth rate (2.8%), and 0 7 / 2008 during the peak period (about 6-9%) is still a distance, it is estimated that the central authorities even though a move will also step by step, to reduce the economic hard landing opportunities. In addition, rapid economic growth in a country, CPI “naturally” repeatedly increased, the central bank “artificial” rate hikes to balance the inflationary pressure, indeed normal, so investors should not be too alarmed. Look, if a country’s CPI growth rose suddenly stop, it means that the country’s economy short-term or to have peaked? It would be more worthy of fear?
In conclusion, although the risk of overheating the mainland economy, but the world continue to implement loose monetary policy, the U.S. economy should have been the worst moment of the past, with the euro area predicament or pick up in the current interest rate remains low, the expected continued funding go into the commodity market trend remains unchanged, so AUD. NZD and CAD with long-term prospects for commodities such countries is still optimistic. Strategy, the proposed Buying commodity money, but still need to set middle falls below the bid price of 100 basis points for stop loss.