The Washington Post (WaPo) carried a story on Tuesday, citing that Chinese authorities ordered factories to suspend production in several major manufacturing regions to preserve electricity, as the country face the worst heat wave in six decades.

Key details

“Sichuan province, home to more than 80 million people, announced Monday that factories in 19 cities and prefectures would halt operations until Saturday to preserve electricity for "use by the people."

“Other areas across China's south have also ordered electricity to be prioritized to run air-conditioners.”

Jin Xiandong, a spokesman for the National Development and Reform Commission (NDRC), said on Tuesday that China was having to rely more on coal for power, as the heat wave and drought were significantly reducing hydropower output.

Market reaction

AUD/USD extends the retreat from daily highs of 0.7040 on the above report, losing 0.06% on the day to 0.7017, at the press time.