When are the China’s CPI, PPI and how could they affect AUD/USD?
China’s CPI, PPI Overview
The National Bureau of Statistics of China (NBS) will publish its data for March at 01.30 GMT. The Consumer Price Index (CPI) is expected to show a rise of 1.2% YoY in March, compared to 1.3% in February. The Producer Price Index (PPI) is projected to show an increase of 0.4% YoY in March versus a fall of 0.9% prior.
The CPI is a key indicator to measure inflation and changes in purchasing trends. The YoY reading compares prices in the reference month to the same month a year earlier. Meanwhile, the PPI is a measurement of the rate of inflation experienced by producers.
How could the China’s CPI, PPI affect AUD/USD?
AUD/USD trades on a negative note on the day in the lead up to China’s CPI, PPI data. The pair edges lower as market uncertainty persists regarding the fragility of the US-Iran ceasefire, boosting demand for safe-haven currencies such as the US Dollar (USD).
If data comes in better than expected, it could lift the Australian Dollar (AUD), with the first upside barrier seen at April 9 high of 0.7095. The next resistance level emerges at the February 26 high of 0.7143. The additional upside filter to watch is the March 11 high of 0.7188.
To the downside, the 0.7000 psychological level will offer some comfort to buyers. Extended losses could see a drop to the February 5 low of 0.6927, followed by the 100-day Exponential Moving Average (EMA) of 0.6880.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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