Australian Dollar remains in the negative territory ahead of China’s CPI data
AUD/USD gains ground after opening at a bearish gap but still remains in the negative territory, trading around 0.7240 during the Asian hours on Monday. Traders await China’s Consumer Price Index (CPI) data due later in the day. Any change in the Chinese economy could impact the Australian Dollar (AUD) as China and Australia are close trading partners.
China’s Consumer Price Index is anticipated to rise 0.8% YoY in April, easing slightly from the 1.0% increase recorded in March. Meanwhile, the Producer Price Index (PPI) is forecast to climb 1.5% in March after posting a 0.5% gain previously.
The AUD/USD pair came under pressure as the US Dollar (USD) strengthened amid growing risk aversion after US President Donald Trump and Iran dismissed each other’s latest peace initiatives aimed at ending the Middle East conflict.
According to Bloomberg on Sunday, Trump turned down Iran’s latest peace proposal, describing it as “totally unacceptable.” Iranian state television reported that an Iranian official said Tehran’s response emphasized ending the conflict across all fronts, particularly in Lebanon, while also addressing the security of shipping routes through the strait, though no details were provided regarding how or when the key waterway could reopen.
An extended Middle East conflict and the fragile ceasefire between the US and Iran may continue to support safe-haven demand for the Greenback, potentially weighing on the major currency pair in the near term.
The US Bureau of Labor Statistics released data on Friday indicating that Nonfarm Payrolls (NFP) increased by 115K in April, down from March’s 185K reading but still exceeding the market forecast of 62K. At the same time, the Unemployment Rate remained unchanged at 4.3% in April, matching analysts’ expectations.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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