Chinese CPI for June rose at an annual rate of +2.7% which was higher than both estimates of +2.5% and last month's reading of +2.1%. The rise was attributed to an increase in food prices.
This figure, while a slight improvement over the prior month, is still lower then the target set forth by the government. Couple that with the continued decline in factory-gate prices and you have a worrisome picture of the slowdown in economic growth. The PPI number fell by -2.7%, lower then estimates of -2.6% as wholesale inflation is still quite anemic. If this trend of weakening demand continues then the world's second largest economy could very well miss their annual growth target for the first time since 1998.
The Aussie and Kiwi sold off making new session lows on this release.