When are the CPI, PPI and how could they affect AUD/USD?

China’s CPI, PPI Overview

The National Bureau of Statistics of China (NBS) will publish its data for April at 01.30 GMT. The Consumer Price Index (CPI) is expected to show an increase of 0.8% YoY in April, compared to 1.0% in March. The Producer Price Index (PPI) is projected to show a rise of 1.5% in March versus an increase of 0.5% prior.

The CPI is a key indicator to measure inflation and changes in purchasing trends. The YoY reading compares prices in the reference month to the same month a year earlier. Meanwhile, the PPI is a measurement of the rate of inflation experienced by producers.

How could the China’s CPI, PPI affect AUD/USD?

AUD/USD trades on a negative note on the day in the lead up to China’s CPI, PPI data. The pair edges lower as the US Dollar (USD) strengthens amid cautious sentiment after US President Donald Trump and Iran rejected each other’s latest peace proposals to end the 10-week conflict

If data comes in better than expected, it could lift the Australian Dollar (AUD), with the first upside barrier seen at the May 6 high of 0.7277. The next resistance level emerges at the 0.7300 psychological level. The additional upside filter to watch is the March 4 high of 0.7380.

To the downside, the May 8 low and a round figure of 0.7200 will offer some comfort to buyers. Extended losses could see a drop to the May 4 low of 0.7153, followed by the April 30 low of 0.7110.