Breaking: China CPI 2.1%, AUD/USD steady below 0.7100

The Aussie is steady on the Consumer Price Index data that is released by the National Bureau of Statistics of China is out as follows:

China CPI

• May CPI +2.1 pct from a year ago (Reuters poll +2.2 pct).
• May CPI -0.2 pct from the previous month (Reuters poll -0.3 pct).
• China says may food CPI +2.3 pct from a year ago; non-food CPI +2.1 pct.

AUD/UD update

AUD/USD has been pressured in the last sessions of the week by a strong US dollar in risk-off markets. The pair slipped below 0.7100 to score a fresh low of 0.7084 ahead of the data. 

Markets will be paying more attention to the US inflation data later today in the North America session. 

''The US May CPI report dominates the global calendar today. Although annual consumer inflation looks to have crested at 8.5%year in March, households are still expected to see a solid lift in prices. Consensus is 0.7%mth, 8.3% year (April 8.3%) and on CPI ex-food and energy, a rise of 0.5%month, 5.9%year (from 6.2%year in April),'' analysts at Westpac explained. 

About China CPI

The Consumer Price Index is released by the National Bureau of Statistics of China. It is a measure of retail price variations within a representative basket of goods and services. The result is a comprehensive summary of the results extracted from the urban consumer price index and rural consumer price index. The purchase power of the CNY is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. A substantial consumer price index increase would indicate that inflation has become a destabilizing factor in the economy, potentially prompting The People’s Bank of China to tighten monetary policy and fiscal policy risk. Generally speaking, a high reading is seen as positive (or bullish) for the CNY, while a low reading is seen as negative (or Bearish) for the CNY.