USD dropped back from its one-year peak before CPI data; China’s exports climbed 20% despite power shortage

USD dropped back from its one-year high against major counterparts on Wednesday. At press time, USDJPY weakened to 113.49, down from its three-year high of 113.785. USDEUR also dropped to 0.8655, the lowest in 15 months. The US CPI data will be due later today and the market is waiting for clues on the latest inflation level. However, it is unlikely that the Fed would make any changes to its scheduled tapering plan in November.

China’s export unexpectedly had some strong growth in September despite the power shortage. Recently, many cities in China have experienced several power outages, a lot of factories were severely impacted. Regardless, outbound shipments in September jumped 28.1% on a yearly basis. The forecast was at 21%. Moreover, total export growth landed at 20%, versus the forecast at 11% and prior release at 15.7%. On the other hand, imports growth slowed to 11%, versus prior release at 23.1%.