China: Growth risks from Oil and US tensions – TD Securities

💡 DMK Insight

China’s economic rebound in early 2026 is a game changer for global markets. With Industrial Production and Exports exceeding expectations, traders should watch how this momentum affects commodity prices and currency pairs, particularly the AUD/USD and USD/CNY. A stronger Chinese economy often leads to increased demand for raw materials, which could boost commodity-linked currencies. Additionally, the rebound in Fixed-Asset Investment suggests that infrastructure spending is ramping up, which could have ripple effects across sectors like construction and materials. But here’s the flip side: if this growth is driven by quasi-fiscal measures, it might not be sustainable long-term. Traders should keep an eye on upcoming economic data releases from China, especially any shifts in policy that could signal a tightening of fiscal support. Watch for key levels in the AUD/USD around recent highs, as a breakout could indicate further bullish sentiment fueled by China’s growth.