NBS will release the China’s February CPI and PPI reports on March 08. Analysts have predicted a decline in the CPI reading. PPI registered 23rd consecutive decline in January. USD/CNY may test 6.175, if February CPI reports miss expectations. Given the way things look, the USD/CNY will likely face two difficult hurdles near 6.175 and 6.217. Being that China is the largest consumer of many commodities in the world, a PPI reading lower than what’s forecasted will be bearish for silver, gold, copper and crude oil. Chinese developments that are positive often cause commodities to rally.
Written by Daniel Elo, Analys for www.EconomicCalendar.com