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Aussie extends losses on Weak Chinese Inflation data

FXStreet (Mumbai) - The Australian dollar extended losses against the US dollar and entered into eleventh consecutive session of declines on softer Chinese inflation data.

At time of writing, the pair trades at 0.8287 levels, down -0.08% from previous session close of 0.8294. The AUD/USD pair continues to be under pressure after the Chinese CPI data slowed to 1.4% year-on-year in November from 1.6% previously, marking the slowest rate of inflation in China in five years. Softer inflation numbers are a sign of slowing demand in China, which is one of Australia’s top export destinations.

AUD/USD Technical Levels

The pair has an immediate resistance at 0.8299 (20-day SMA) levels, above which gains could be extended to 0.8327 (100-day SMA) levels. On the flip side, support is seen at 0.8258 (Dec 8 Low), below which it could extend losses to 0.8221 (Dec 9 Low) levels.

China CPI warrants more aggressive monetary policy - ANZ

Li-Gang Liu Chief Economist, Greater China, and Hao Zhou, China Economist, both working at ANZ, note that China CPI inflation in Nov warrants more aggressive monetary policy responses by the PBoC.
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