China’s CPI, PPI Overview
The National Bureau of Statistics of China (NBS) will publish its data for February at 01.30 GMT. The Consumer Price Index (CPI) is expected to show a rise of 0.8% YoY in February, compared to 0.2% in January. The Producer Price Index (PPI) is projected to show a decline of 1.1% YoY in February versus a fall of 1.4% 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 heightened tensions in the Middle East trigger a risk-off mood and boost 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 the January 30 high of 0.7055. The next resistance level emerges at the March 5 high of 0.7089. The additional upside filter to watch is the February 12 high of 0.7147.
To the downside, the January 26 low of 0.6906 will offer some comfort to buyers. Extended losses could see a drop to the 100-day EMA of 0.6810, followed by the January 6 high of 0.6741.
Economic Indicator
Consumer Price Index (YoY)
The Consumer Price Index (CPI), released by the National Bureau of Statistics of China on a monthly basis, measures changes in the price level of consumer goods and services purchased by residents. 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. Generally, a high reading is seen as bullish for the Renminbi (CNY), while a low reading is seen as bearish.
Read more.
Source: https://www.fxstreet.com/news/when-is-the-chinas-cpi-ppi-and-how-could-it-affect-aud-usd-202603082325
