- China food prices fell 2.9% M/M in March.
- The main contributing factor to this softer than expected CPI reading is the moderation in food prices after the lunar new year.
- The softer than expected CPI fell from a 10 month high in February where the reading was subject to seasonal distortions caused by the lunar new year holiday which drove food price sharply higher.
- This reading potentially gives the Chinese more room to manoeuvre with their monetary and fiscal policy.
- AUD/USD immediately moved higher by 18 pips from 1.0423 to 1.0441, trades 1.0444 (+41 pips) last.
- EUR/USD immediately moved higher by 5 pips from 1.3057 to 1.3062.
- The Hang Seng immediately moved higher by 24.25 points from 21855.50 to 21879.75.
Print 01:42, 09 Apr 2013 - Asian News - Source: Newswires
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