Aussie holds lower ground near 0.6960 during Wednesday’s Asian session, defending the downbeat inflation data from China. In addition to China CPI and PPI data, careful attitude ahead of the US inflation numbers and fears of economic recession also weigh on the Aussie pair.
China’s headline Consumer Price Index (CPI) eases to 2.7% YoY in July versus 2.9% expected and 2.5% prior. Further, the Producer Price Index (PPI) dropped to 4.2% compared to 8.0% market forecasts and 6.1% previous readings.
Wall Street’s slow performance, as well as a rebound in the US 10-year Treasury yields to 2.79%, reveals a bitter sentiment in the markets. Additionally, the S&P 500 Futures also print mild losses at around 4,120 by the press time and teases the AUD/USD bears, due to the pair’s risk barometer status.
Moving on, Aussie investors may observe a slow session ahead of the US CPI, expected to ease to 8.7% from 9.1% on YoY. However, risk catalysts may entertain the pair traders. Also, important to watch will be the CPI ex Food & Energy which is likely to rise from 5.9% to 6.1%.
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