AUD/USD remains on the defensive after China inflation data


  • AUD/USD remains in the red after mixed China inflation data. 
  • The CPI ticked higher in May while the factory-gate inflation decelerated. 
  • Aussie Dollar is not impressed by record highs in iron ore prices. 

AUD/USD continues to trade in the red near 0.6955 following the mixed Chinese inflation figures. 

The consumer price index (CPI) rose at annualized rate of 2.7% in May as expected, having risen by 2.5% in April. 

Meanwhile, factory-gate prices or producer price inflation growth decelerated to 0.6% in May from 0.9% in April.

The People’s Bank of China has room for targeted rate cuts, according to China Securities Journal. However, a sustained uptick in the CPI will likely complicate matters for the central banks. 

Further, the PPI deceleration is bad news for the commodity currencies like the AUD. 

The AUD, therefore, risks extending losses during the day ahead. It is worth noting that the Aussie Dollar has come under pressure in Asia despite the 4% rally by China’s iron ore prices to hit new record highs. The commodity forms bulk of Australia’s exports. 

Pivot levels

    1. R3 0.6991
    2. R2 0.6979
    3. R1 0.6971
  1. PP 0.6959
    1. S1 0.695
    2. S2 0.6938
    3. S3 0.693

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD recaptures 1.08 as coronavirus fears weigh on market mood

EUR/USD has recaptured 1.08 as US bond yields retreat in reaction to growing fears about the coronavirus outbreak economic impact. Earlier, the pair plunged amid weak German data.

EUR/USD News

GBP/USD bounces above 1.30 as markets shrug off wage figures

GBP/USD is trading above 1.30 as investors ignore weak UK wage figures and Brexit concerns once again. Coronavirus headlines are eyed.

GBP/USD News

Altcoins push hard not waiting for a Bitcoin reaction

The Altcoin market has only needed one business day to see prices rise sharply again. Bitcoin, still, has adopted the anchor function and for the moment is giving up the battle for the $10000.

Read more

Gold firmer, near $1,600/oz on coronavirus fears

Renewed fears around the Chinese coronavirus (COVID-19) have been supporting the demand for the safe haven metal in past hours, taking the ounce troy to levels just shy of the key $1,600 mark.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex MAJORS

Cryptocurrencies

Signatures