The AUD/USD pair is falling significantly for the second consecutive day; the Chinese inflation report is counting against the Aussie.
On Thursday afternoon, the Australian Dollar is getting weaker against the USD. The current quote for the instrument is 0.7501.
This morning, China, which is the most important trade and economic partner of Australia, published several statistical reports that made the market think. The Chinese CPI in February was 0.8% y/y after being 2.5% y/y the month before and against expectations of 1.9% y/y. On MoM, the indicator lost 0.2% after adding 1.0% in January. The food inflation lost 0.6% last month.
On the one hand, there is some kind of balance in this statistics. In January, the CPI was growing due to the Lunar New Year celebration. It’s not a surprise that the prices retreated after that. On the other hand, the correction is too significant.
The PPI turned out to be more stable. In February, the indicator expanded by 7.8% y/y after adding 6.9% y/y in January and against expectations of 7.6% y/y. Later, it is sure to impact the CPI.
The Australian Dollar has to respond to the Chinese statistics, because foreign trade, among other things, are also influenced by the well-being of the partner.
RoboForex Analytical Department