The National Bureau of Statistics of China is scheduled to release its Consumer Price Index (CPI) and Producer Price Index (PPI) data for March at 01:30 GMT. Market consensus expects the CPI to rise by 1.2% year-over-year in March, slightly lower than the 1.3% increase recorded in February. Meanwhile, the PPI is projected to show a 0.4% year-over-year increase, reversing from a 0.9% decline in the previous month [1].
The CPI is a key indicator of inflation and purchasing trends, while the PPI measures inflation experienced by producers. These data points are closely watched as they provide insight into the health of the Chinese economy, which is a significant trading partner for Australia [1].
Ahead of the release, AUD/USD is trading negatively, reflecting market uncertainty and increased demand for safe-haven currencies such as the US Dollar. This sentiment is partly influenced by concerns over the fragility of the US-Iran ceasefire, which has boosted risk-off behavior in the markets [1].
If the CPI and PPI data exceed expectations, it could support the Australian Dollar, with technical resistance levels noted at 0.7095 (April 9 high), 0.7143 (February 26 high), and 0.7188 (March 11 high). On the downside, the 0.7000 psychological level offers support, with further declines potentially targeting 0.6927 (February 5 low) and the 100-day EMA at 0.6880 [1].
CONCLUSION
China's upcoming CPI and PPI data releases are expected to influence AUD/USD trading, with current sentiment leaning negative due to broader market uncertainties. Better-than-expected inflation figures could provide upside for the Australian Dollar, while disappointing data may reinforce recent weakness. Investors are closely watching technical levels for potential market reactions.