News

AUD/USD keeps losses after below-forecast China factory-gate inflation

  • AUD/USD remains in the red post-below-forecast China CPI and PPI readings. 
  • The drop in the CPI means the PBOC has more room to stimulate the economy. The risk assets, therefore, could cheer the decline in the CPI, capping the downside in the Aussie dollar. 

The Aussie dollar is extending losses as China’s factory-gate inflation released soon before press time highlighted growing pressure on the world’s second-largest economy. 

The producer price index (PPI) or factory-gate inflation, a measure of the prices businesses receive for their goods and services, rose 0.9 percent in December from a year earlier, compared with a 2.7 percent increase in November. Meanwhile,  the consumer price index (CPI) also ticked lower to 1.9 percent from 2.2 percent. 

The moderation in PPI is indeed bad news for commodities and commodity dollars like the AUD. However, with cooling consumer inflation, the PBOC has more room to stimulate the economy. The risk assets, therefore, could pick up a bid, and cap downside in the Australian dollar. 

As of writing, the AUD/USD is trading at 0.7154, having hit a session low of 0.7146 post-PPI release. 

AUD/USD Technical Levels

AUD/USD

Overview:
    Today Last Price: 0.7156
    Today Daily change: -25 pips
    Today Daily change %: -0.348%
    Today Daily Open: 0.7181
Trends:
    Previous Daily SMA20: 0.7097
    Previous Daily SMA50: 0.7189
    Previous Daily SMA100: 0.7179
    Previous Daily SMA200: 0.7336
Levels:
    Previous Daily High: 0.7194
    Previous Daily Low: 0.713
    Previous Weekly High: 0.7125
    Previous Weekly Low: 0.6684
    Previous Monthly High: 0.7394
    Previous Monthly Low: 0.7014
    Previous Daily Fibonacci 38.2%: 0.717
    Previous Daily Fibonacci 61.8%: 0.7154
    Previous Daily Pivot Point S1: 0.7143
    Previous Daily Pivot Point S2: 0.7104
    Previous Daily Pivot Point S3: 0.7079
    Previous Daily Pivot Point R1: 0.7207
    Previous Daily Pivot Point R2: 0.7232
    Previous Daily Pivot Point R3: 0.7271

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