China Consumer Price Index and China Producer Price Index fail to move the needle in AUD/USD

The China Consumer Price Index and the China Producer Price Index that are released by the National Bureau of Statistics of China have been released as follows:

China CPI YoY Dec: 1.8% (est 1.8%, prev 1.6%).

China Producer Price Index YoY Dec: -0.7% (est -0.1%, prev -1.3%)

AUD/USD update

the outcomes have gained to move the needle in AUD/USD which sits at 0.6918 in quiet pre-US CPI event markets. 

On Wednesday, however, AUD/USD rallied on the knee-jerk to the Aussie data dump as follows: 

• Aussie data dump (Nov): Data comes in hot and sends AUD higher

The move was faded above 0.6900 and bears moved in at the high of 0.6925 in choppy conditions as the markets get set for the US Consumer Price Index. 

About 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.