Disappointing Chinese inflation, Australian home loans

The Australian Dollar is off Asian session highs after what should be interpreted as relatively negative data out of China and Australia.

In China, inflation figures for August show CPI 1.3% y/ym, which was significantly lower than 1.7% expected and 1.8% last, with the monthly reading at 0.1%. As per PPI, -0.8% y/y, which is slightly higher than -0.9% expected and -1.7% prior.

The monthly reading was +0.2%. As per Australia, home loans m/m took a hit, coming at -4.2% vs -1.5% expected and 1.7% last, with a 1.2% revision higher from the previous. Investment lending m/m was +0.5% vs 3.2% last, while owner-occupied loan value m/m stood at -3.1% vs 1.8% last.