New York Federal Reserve (Fed) President Williams was on the wires last minutes, via Reuters, speaking about vulnerabilities of the global financial system at a dinner event, in New York.

Key Quotes:

Interest rates will be very low for the foreseeable future and growth will be modest.

Monetary policy is moderately accommodative.

What worries him about persistently low inflation is that inflation expectations could come down.

The economy is in a good place with a really strong labor market and an unemployment rate of 3.5% not creating inflation.

Monetary policy is well-positioned right now.

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According to the latest data published by China’s National Bureau of Statistics (NBS) on Saturday, the Consumer Price Index (YoY) arrived at +3.8% last month vs. +3.3% exp and +3.0% booked in September.

The annualized CPI rate rose at the fastest pace seen since January 2012.

Meanwhile, China’s Producer Price Index (YoY) (October) came in at -1.6% in vs. -1.5% exp and -1.2% last.

The mixed Chinese inflation data could have virtually no impact on the Aussie Dollar, as the US-China trade news remain the sole driver for the Chinese proxy. The AUD/USD pair finished Friday near one-week lows of 0.6848, down -0.52%.

  • Trump has yet to agree to a tariff rollback, trade deal uncertain

About China CPI

The Consumer Price Index is released by the National Bureau of Statistics of China. It is a measure of retail price variations within a representative basket of goods and services. The result is a comprehensive summary of the results extracted from the urban consumer price index and rural consumer price index. The purchasing power of the CNY is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. A substantial consumer price index increase would indicate that inflation has become a destabilizing factor in the economy, potentially prompting The People’s Bank of China to tighten monetary policy and fiscal policy risk. Generally speaking, a high reading is seen as positive (or bullish) for the CNY, while a low reading is seen as negative (or Bearish) for the CNY.