China CPI: +2.1 pct from a year ago (Reuters poll +2.4 pct), AUDUSD wobbles
|The Consumer Price Index, released by the National Bureau of Statistics of China, has been released as follows:
- China October PPI -1.3 pct from a year ago (Reuters poll -1.5 pct).
- China October CPI +2.1 pct from a year ago (Reuters poll +2.4 pct).
- China October PPI +0.2 pct from the previous month.
- China October CPI +0.1 pct from the previous month (Reuters poll +0.3 pct).
- China says October food CPI +7.0 pct from a year ago; non-food CPI +1.1 pct.
AUDUSD update
Meanwhile, AUDUSD is testing key hourly support as the US Dollar attempts to firm from daily support. The prior day's lows are located at 0.6443 as an immediate target on a break of the trendline and horizontal resistance:
US Dollar bulls lurking
The price of the DXY has met a critical daily support area. A break here could be strongly beneficial for the commodity complex and the Aussie would be expected to rally. On the other hand, the bears will be noting the weekly template and a mid-weel opportunity to bite into the in-the-money long positions that have been building over several days.
About the China CPI
The Consumer Price Index is released by the National Bureau of Statistics of China. It is a measure of retail price variations within a representative basket of goods and services. The result is a comprehensive summary of the results extracted from the urban consumer price index and rural consumer price index. The purchase power of the CNY is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. A substantial consumer price index increase would indicate that inflation has become a destabilizing factor in the economy, potentially prompting The People’s Bank of China to tighten monetary policy and fiscal policy risk. Generally speaking, a high reading is seen as positive (or bullish) for the CNY, while a low reading is seen as negative (or Bearish) for the CNY.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.