Week in FX ASIA China Growth Slows Down

China’s manufacturing is inline to contract at a faster pace than expected. Demand for Chinese good has slowed down and even though production has not contracted at the same pace it is expected to wind down. This slowdown has impacted the Australian Economy as China is the largest trading partner to the resource heavy nation. Australian exports have suffered and mining and other resource projects have been put on hold. The Australian Resources Minister has said in an interview: “The resources boom is over”

House ownership rules have ignited some complaints as China tries to cool down the housing market. The Chinese authorities are restricting purchases of dwellings and in some cases limiting the number of properties that residents can own. This has met with protest from non-residents of cities such as Shanghai where non-residents can only own one dwelling, but some have cited marriage and future family members as a reason to buy a 2nd residence.

Below are some other highlights of the week:


ASIA

 

EUROPE Week in FX

AMERICAS Week in FX

 

WEEK AHEAD

  • EUR Samaras-Hollande meeting
  • USD Consumer Confidence
  • EUR Harmonised Index of Consumer Prices
  • US USD Fed’s Beige Book
  • EUR Unemployment Change
  • USD Core Personal Consumption Expenditure – Prices Index
  • CAD Gross Domestic Product
  • USD Fed’s Bernanke Speech Jackson Hole Speech

 

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza