AUD/USD sees little action after dismal Chinese inflation readings

• China March inflation readings - CPI and PPI - miss estimates.
• AUD/USD turns a blind eye towards China data release.

The Aussie dollar is showing an uncanny resilience to weaker-than-expected China inflation readings.

As of writing, the AUD/USD pair is trading at 0.7762, representing little change post-softer China consumer price index (CPI) and producer price inflation (PPI) release.

The official data released a few minutes ago showed China's CPI rose 2.1 percent in March vs 2.6 percent expected and 2.9 percent last. Meanwhile, the PPI cooled to 3.1 percent, missing the estimate of 3.2 percent and down from the previous month's print of 3.7 percent.

The decline in the PPI shows the reflationary pressures in the world's second-largest economy are ebbing, a development that could leave the Aussie bulls unimpressed. However, China's President Xi's conciliatory tone and the resulting drop in the odds of a US-China full-blown trade war could be helping the AUD avoid losses.

The spot clocked a high of 0.7769 earlier today before trimming gains on the back of a dismal Aussie consumer sentiment index.

AUD/USD Technical Levels

FXStreet Chief Analyst Valeria Bednarik expects Aussie to advance further as the technical indicators maintain their upward slopes near overbought readings.

Support levels: 07740 0.7700 0.7765

Resistance levels: 0.7785 0.7820 0.7850