According to the recent stats fro May 2015, China is currently seeing an inflation slowdown amid an economic slowdown. Producer prices are seeing the same tendency, Market Leader reports.
Masterforex-V Academy reports that the Chinese Consumer Price Index (CPI) was equal to 1.2% in May 2015. This means that the inflation grew only than much in May 2015 relative to May 2014. For the sake of comparison, April’s figures were 1.5% relative to the figures seen in April 2014. This leads us to believe that the Chinese inflation rate is really slowing down a bit.
As for the Producer Price Index (PPI), it saw a sharp decline by 4.6% (y/y). The bad news is that the Chinese PPI has been going down for 39 months in a row! With that said, the inflation rate turned out to get below the forecast made by the People’s Bank of China.
FOREX
As for the Chinese Yuan, Masterforex-V Academy reports that USDCNY i still trading within the scope of a horizontal trend inside the 6,1785 - 6,2213 range. At this point it is trading close to 6,2056 CNY per 1 USD.
At this point, the closest major levels of support are located at the local low of 6,1785 as well as the bottom of the MF sloping channel. At the same time, the closest major level of resistance can be found at the all-time high of 6,2213. (look at the chart below, courtesy of Masterforex-V Academy).
