China CPI Remains Soft: AUD
Rowan Crosby • 1 min read
Today’s Chinese CPI print came out a little weaker than many had hoped which continues to underline the softness in the economy.
China finished at 4.5%, down from the expected 4.7%, however, it was the same as the previous month.
We are accosted to seeing some strong CPI results out of China and this illustrates the fact that things are still a little shaky.
While the phase 1 trade deal is in the works, we are still not likely to see any real indictors in the data for many months.
And a phase 1 deal, is still only a partial way towards where the two counties need to get to.
Another concern here is that PPI was also very soft as well, coming in not only negative but missing expectations at -0.5%.
This is really just reiterating the same type of themes that we’ve been seeing.
On a more positive note, the AUD/USD has been seeing a bit of upside in the Asian session, however, that is due to the easing of tensions between the US and Iran.
Or more correctly, the focus on it has eased off. While we are still seeing plenty of headlines about missiles and plane crashes, the markets seem like they have settled down.
Looking at the Aussie specifically, the 0.6850 level has now held on two attempts, so we could suggest that is a double bottom of sorts.
I would be looking to get short under that level, while if price reclaims 0.6900, then that could make for a nice little long position and some likely short covering in the process.