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Defensive Flows In Wake Of Soft Chinese Data

CROSS-ASSET BASIS

Modest risk-off flow observed in the wake of the weaker than expected Chinese economic activity data for the month of August. G10 FX trade sees the commodity dollar bloc come under pressure, while e-minis tick lower and U.S. Tsys see a very modest bid. There hasn't been much of a reaction in USD/CNH. The deeper than expected slowdown in Chinese consumption growth will be attributed to COVID-related lockdowns, with the sell-side mostly looking for a bounce back in Q4.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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