Chinese CPI Beats Expectations as the AUD/USD Lifts
Rowan Crosby • 1 min read
The US-Chinese trade sagas have been the major focus lately. This week we get to look at some information on how the economy is tracking.
Yesterday, we saw a slightly weaker trade balance, however, exports remained strong and beat expectations.
Today CPI was released and it too tick above expectations. Coming in at 2.1% vs 2.0% expected.
While this is a good beat, it is still far below the level of inflation that the Chinese Government would be hoping for. A number closer to 3% would be ideal, but it seems even the buoyant Chinese economy is a little slow paced at the moment. They’re not the only one in fairness.
The AUD/USD has been relatively strong today and overnight. Yesterday we saw some whipsaw action as resistance still keeps on holding just under the 0.7450 level.
Through the US session the AUD gained ground as the USD was on the weak end of the scale.
The Aussie still has major resistance at 0.7500 and support at 0.7350.
I’m still looking to sell the spikes to 0.7450. In reality, probably around the 0.7440 is about as high as price has been pushing so keep watching that level closely.