Chinese CPI/PPI preview – what to expect in AUD/USD?

By FXStreet AUD/USD has been in a wide phase of consolidation of the bullish recovery this year so far of the 2015 downtrend.

0.7700 has proven to an area too far, however, but the bulls are battling on in a volatile commodities climate and support has been established at the 0.75 level. For today, we have the next set of key Chinese data coming out today, kicking of what could be the start to a key and busy week ahead.

CPI expectations

The Chinese CPI for March will be released at 11:30am Syd/9:30am local. Analysts at Westpac are expecting for this number to tick up to 2.4% y/y though explained that growth remains the focus of monetary policy. At the same time, PPI is expected to continue to reflect low commodity prices. While inflation is not usually a big mover as markets focus on the nations manufacturing and trade balances in a climate where there is big focus on the commodities sector.

PBoC and the 3% 2016 CPI annual target

Markets pay attention to the CPI data as this is watched closely by the PBoC because should the annual CPI reading more too far below or beyond the Chinese government’s target levels, the …read more

Source:: FX Street