Daily Briefing | 2026-08-27: Inflationary pressures resurface, AI and energy risks intertwine

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Today's main theme

The main market theme over the past 24 hours has been the reconvergence of "inflationary stickiness, AI capital spending, and Middle East energy risks". U.S. PCE inflation remained above the Federal Reserve's target in July, supporting bond yields and the dollar. Meanwhile, Nvidia's latest financial report continues to demonstrate strong demand for AI infrastructure, but valuation and profit margin pressures have also made the market more sensitive to "how long high growth can last". In China, the National Development and Reform Commission announced its policy priorities for the second half of the year, emphasizing a more proactive fiscal policy, a moderately loose monetary policy, expanding domestic demand, and advancing major projects. Although the negotiations in the Strait of Hormuz have brought expectations of easing tensions, actual shipping throughput remains significantly low, and energy supply risks have not yet been resolved.

Five key news items

1. US inflation remains high, and the market lowers expectations for easing.

The US PCE price index rose 0.2% month-on-month and 3.7% year-on-year in July. Inflation continued to rise above target, prompting the market to reassess the Federal Reserve's next policy path. U.S. Treasury yields and the dollar strengthened, putting pressure on gold. For global assets, the risk of "higher and longer" interest rates has once again become a valuation constraint.Reuters

2. Nvidia's revenue doubled, but demand for AI infrastructure remains strong.

Nvidia reported revenue of $96.2 billion for the second quarter of fiscal year 2027, a year-over-year increase of 106%; Data center revenue reached $89 billion, a year-over-year increase of 117%, and revenue guidance of approximately $108 billion was provided for the third quarter. The financial report reinforces the judgment that AI computing power investment is still in an expansion phase, but the market will continue to pay attention to gross profit margins, supply constraints, and whether huge capital expenditures can be translated into terminal profits.NVIDIA

3. China clarifies its policy mix for stabilizing growth in the second half of the year.

The National Development and Reform Commission released its plan implementation report, stating that GDP grew by 4.7% year-on-year in the first half of the year, and proposed to continue to implement a more proactive fiscal policy and a moderately loose monetary policy in the second half of the year, accelerate fiscal expenditures, bond funds and the implementation of major projects, while expanding domestic demand, supporting emerging consumption and "artificial intelligence+". The policy focus remains on supporting demand and accelerating the transformation of old and new growth drivers.National Development and Reform Commission

4. Negotiations in the Strait of Hormuz are progressing, but shipping has not yet returned to normal.

Iran and Oman continue to discuss temporary shipping arrangements, prompting markets to lower some of their energy risk premiums. However, data shows that the volume of merchant ships passing through the strait is still significantly lower than the recent average. As long as shipping recovery is insufficient, oil and gas prices may still fluctuate rapidly due to negotiation progress, sanctions, and security incidents.Reuters

5. China and India reaffirmed their commitment to maintaining border peace and expanding communication.

Following high-level talks on the border issue in Beijing, China and India reiterated their commitment to maintaining peace and stability in the border region and expanding communication mechanisms. If both sides can reduce the risk of border friction, it will help improve the political and trade environment between Asia's two largest economies, but a substantive border settlement still depends on subsequent implementation and negotiations.Reuters

RMB to Australian Dollar Exchange Rate Card

The latest foreign exchange rates from the Bank of China show thatAugust 27, 2026 05:30The Australian dollar spot selling price is 484.49 RMB / 100 AUD。 Based on this calculation:

• 1 Australian dollar ≈ 4.8449 RMB
• 100 AUD ≈ 484.49 RMB
• 1000 Australian dollars ≈ 4844.90 RMB

This figure represents the Bank of China's spot foreign exchange selling price, and the actual foreign exchange purchase transaction price may vary slightly depending on the channel and time.BOC

Market Correlation and Today's Observation

The most noteworthy question today is whether interest rates, AI, and energy can remain stable simultaneously. If US inflation remains high, global growth stock valuations and non-US currencies may come under pressure; Nvidia's performance continues to provide fundamental support for the AI investment chain. On the other hand, if there are clearer improvements in navigation in the Strait of Hormuz, oil price and inflation expectations may ease. For the RMB against the Australian dollar, in the short term, attention should still be paid to the direction of the US dollar, the implementation of China's policies to stabilize growth, and the impact of energy prices on Australia's terms of trade.

Cover photo:Taylor Vick / Unsplash