Yen gains on safe haven flows after Chinese inflation misses forecasts

A further slowdown in Chinese consumer prices weighed on risk sentiment in Asian markets on Wednesday.

Consumer prices in China rose 1.6 per cent in September from a year earlier, easing from a 13-month high of 2 per cent in August, and below expectations for a 1.8 per cent gain. Producer prices were down 5.9 per cent from a year ago, in line with expectations and the previous month’s result.

The yen benefitted from safe haven flows and was 0.1 per cent stronger this morning, gaining for a third straight day to Y119.60, brushing aside data showing producer price inflation remained at its slowest pace since late 2009.

The Australian dollar was down 0.4 per cent to $0.7218 in morning trade, extending a 1.6 per cent decline on Tuesday, which was its steepest one-day drop since August 24. That was despite data showing Australian consumer confidence rebounding this month.

Oil prices were moving cautiously on Wednesday, having declined by more than 6 per cent in the previous two sessions. Brent crude was down 0.1 per cent at $49.21 a barrel, while West Texas Intermediate was up 0.1 per cent to $46.69.

Gold was up 0.4 per cent to $1,172.88 an ounce, eyeing a fourth consecutive day of gains that would hand the metal its longest winning streak since the five sessions to August 21 as it benefits from a weaker US dollar.

The post Yen gains on safe haven flows after Chinese inflation misses forecasts appeared first on Forex Circles.

Source:: Yen gains on safe haven flows after Chinese inflation misses forecasts