Chinese CPI and PPI reports are due
Strong imports data from China set the tone for commodity currencies and global markets yesterday.
Today the focus shifts to Chinese inflation.
At the moment, the market isn't dialed in to what's happening with Chinese prices. The PBOC cut rates earlier this year and is waiting to see what happens next.
The CPI report is expected to show a 2.2% year-over-year rise in May, a tick down from 2.3% y/y in April. Despite higher commodity prices, the PPI report is forecast to fall 3.2% y/y versus -3.4% in April.
The numbers are due at 0130 GMT.
Note that the Chinese national holiday for the Dragon Boat Festival starts today and continues into the weekend.
