Bloomberg came out with an analytical piece on the recent behavior of China’s consumers suggesting a cautious mood for the globe even if the pandemic woes ease moving forward.
“Consumers in China remain cautious even though the Covid-19 outbreak has been under control for much of the past year. That’s offering clues for the kind of spending patterns that emerge globally once pent-up demand fades,” said the piece.
Bloomberg also adds, “Retail sales have rebounded but consumers remain wary, demand for goods has outstripped purchases of services.”
The report mentions a gauge measuring how confident the respondents feel while citing the recent recovery in Chinese consumer sentiment as tepid.
Elsewhere, Axios came out with the news citing US Secretary of State Tony Blinken’s vow to hold China accountable for covid outbreak while an Aussie press quotes UK Trade Secretary Lizz Truss while calling out China’s pernicious trade misbehavior.
FX implications
While the aforementioned news and analysis exert additional downside pressure on the market sentiment, USD/CNH traders await China’s trade data for May for fresh impulse.