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Abstract:AUD/USD stays depressed around the intraday low even as China prints welcome inflation figures for December. China’s CPI grew 0.2% YoY, PPI recovered to -0.4% on yearly format. Risks dwindle mid virus woes, Sino-American tension and US stimulus hopes. A light calendar in Asia keeps risk catalysts on the driver’s seat.
AUD/USD ignores more than expected China inflation numbers while holding the lower ground near 0.7710, down 0.62% intraday, during Monday‘s Asian session. The reason for the quote’s latest weakness could be traced from the risk-off mood as well as the US dollars sustained recovery moves.
Chinas Consumer Price Index (CPI) and Producer Price Index (PPI) for December crossed upbeat forecasts while flashing 0.2% and -0.4% YoY figures. It should be noted that the monthly CPI 0.7% versus 0.4% expected -0.6% prior.
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The Australian Dollar (AUD) traded sideways against the US Dollar (USD) on Tuesday, staying just below the seven-month high of 0.6798 reached on Monday. The downside for the AUD/USD pair is expected to be limited due to differing policy outlooks between the Reserve Bank of Australia (RBA) and the US Federal Reserve. The RBA Minutes indicated that a rate cut is unlikely soon, and Governor Michele Bullock affirmed the central bank's readiness to raise rates again if necessary to combat inflation.
U.S. stocks closed mixed. Dow Jones Industrial Average fell 118 points (-0.31%) to 37,592, S&P 500 gained 3 points (+0.08%) to 4,783, and Nasdaq 100 edged up 12 points (+0.07%) to 16,832.
Abstract:Daily currency trading guides and market forecasts: NZD/USD, AUD/USD, USD/JPY, EUR/USD, GBP/USD, USD/CAD, GBP/JPY, EUR/JPY