Another day and another weak piece of data out of China. Today it is CPI which has come in lower than expected.

CPI came in at  1.7% vs 1.9% expected YoY. While PPI was at 0.1% vs 0.3% YoY.

More signs that the Chinese economy is slowing down at the moment and comes as a number of other metrics such as GDP start to feel the pressure.

This isn’t top-tier data mind you, but significant nevertheless.

Aussie Outlook

The negative data has seen the AUD/USD tick back under the major level at 0.7100.

0.7050 and then 0.7000 are my next two key support levels below, with 0.7100 turning into key resistance.

0,7200 is R1 and 0.7300 is R3 and the most recent highs sitting at 0.7400.