Week in FX Asia – China Slowdown to Impact Region Growth

Chinese industrial profits fell by 6 percent in August. Making it the fifth month in a row that registered a drop. The goverment has been asked to introduce measure to stop the slowdown and boost economic growth.The Bank of China followed the lead from the European Central Bank and the Federal Reserve by cutting lending and deposit rates. The Asian programs have smaller objectives and lagging the action of the West could be beneficial for the region as it can capture some of the benefits of its stronger currencies and higher interest rates.

Malaysia debt is expected to rise 10 percent this year.Growth in the South Asian country is forecasted around 5 percent in line to match last year’s figures.

Singapore and Hong Kong due to their respective pegs to the Fed’s interest rate and the U.S. dollar could face an inflationary scenario that could fuel the already hot property market.Hong Kong has issued warnings and its looking into cooling the sector to avoid a property crash.


WEEK AHEAD

  • USD ISM Manufacturing
  • AUD Reserve Bank of Australia Rate Decision
  • GBP Bank of England Rate Decision
  • EUR European Central Bank Rate Decision
  • USD Fed Releases Minutes from Sept. 13 FOMC Meeting
  • JPY Bank of Japan Rate Decision
  • USD Change in Nonfarm Payrolls
  • USD Unemployment Rate
  • CAD Unemployment Rate

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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