China’s Commerce Ministry said in a statement on Wednesday that there is no reason to be overly optimistic on foreign trade this year, per Reuters.
Key quotes
“The external environment for China's foreign trade remains complex and the country cannot be blindly optimistic about trade prospects in 2021.”
“China will step up firms' ability to cope with foreign exchange risk.”
Earlier on, China’s National Development and Reform Commission (NDRC), the country’s state planner, promised intervention to keep inflation in certain goods down.
Additional comments
“To control corn, wheat, pork prices after PPI surge.”
“To keep prices of goods linked to livelihood stable.”
Market reaction
Despite the talks of Chinese intervention amid mixed inflation data, the risk sentiment remains unperturbed, keeping AUD/USD listless below 0.7750, as of writing.
The spot trades modestly flat at 0.7742 while USD/CNY eases slightly towards 6.3950.
