AUD/USD remains on the defensive below 0.6700, Chinese CPI, US PPI eyed
|- AUD/USD attracts some sellers amid the rebound of USD.
- US headline CPI for December rose 0.3% MoM vs. 0.1% prior; the Core CPI figure grew 0.3% MoM.
- Australian Trade Balance jumped to 11.437M in November.
- Chinese CPI and US PPI reports will be in the spotlight on Friday.
The AUD/USD pair remains on the defensive during the early Asian session on Friday. The pair edges lower on the stronger-than-expected December US inflation figures. Investors await China’s inflation and Trade Data on Friday for fresh impetus. AUD/USD currently trades around 0.6688, up 0.03% on the day.
Data from the US Bureau of Labor Statistics revealed on Thursday that the headline Consumer Price Index (CPI) for December rose 0.3% MoM from 0.1% in the previous reading, above the market consensus of 0.2%. The Core CPI figure grew 0.3% MoM while the annual rate climbed 3.9% YoY versus 4.0% prior, better than the 3.8% estimated.
The upbeat US CPI data and labor market data last week prompted investors to question the Federal Reserve’s (Fed) plan to cut interest rates in the second quarter. This, in turn, boosts the US Dollar (USD) and acts as a headwind for the AUD/USD pair.
On the Aussie front, the Australian Trade Balance jumped to 11.437M in November. Meanwhile, Goods and Services Exports came in at 1.7% on a monthly basis versus 0.4% prior, and Imports fell 7.9% in December MoM versus a 1.9% drop prior.
Apart from this, China’s Consumer Price Index (CPI), Producer Price Index (PPI) and Trade Balance will be released on Friday. If the report shows a better outcome, this could boost the China-proxy Australian Dollar.
Moving on, attention will shift to the US Producer Price Index (PPI) for December, which is projected to show an increase of 0.1% MoM and 1.3%, respectively. The annual Core PPI is estimated to ease to 1.9% YoY versus 2.0% prior. These figures could give a clear direction to the AUD/USD pair.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.