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China September trade, inflation data to show improvement

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Investors are expected to eye key China trade and inflation data due this week, as the country returns from its Golden Week holiday.

Moody's Analytics economists said in a note that the data would likely show "an economy on the mend, albeit with persistent overcapacity across heavy industries."

China's September trade figures, due on Oct. 13, will give investors a steer on the health of the world's largest exporter, and whether domestic demand improved in September.

"Exports, particularly of manufactured goods, have been more promising lately [and] this trend should continue if the U.S. economy gathers steam," Moody's Analytics said.

Investors will also eye September imports, after the previous month's surprise increase. China's August imports rose by 1.5 percent year-on-year, beating a Reuters poll forecast of a 4.9 percent decline.

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This was the first on-year rise in dollar-denominated imports since October 2014, Reuters reported.

"Imports may be slightly positive and has scope to improve further with the economy showing signs of stabilization," Vishnu Varathan, senior economist at Mizuho Bank, said in a Friday note.

China's September Consumer Price Index (CPI) and September Producers Price Index (PPI) are due on Oct. 14.

Varathan said CPI could see a pick-up, but would remain below the People Bank of China's 3 percent official target, while PPI may see a slight contraction as commodity prices start to recover.

China's economic news flow will likely have an impact on the Australian dollar, which is seen as a proxy for the Chinese economy.

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