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

💡 DMK Insight

China’s CPI data is about to drop, and here’s why it matters for traders: A projected slowdown in CPI growth from 0.8% to 0.4% YoY could signal weakening consumer demand, which might lead to shifts in monetary policy. If the actual figures come in lower than expected, it could fuel concerns about deflationary pressures in the Chinese economy, impacting global markets. Traders should keep an eye on related assets like commodities and currencies, especially the yuan, as they may react to these inflation signals. Additionally, this data release could influence risk sentiment in broader markets, particularly in equities and emerging markets. On the flip side, if the CPI surprises to the upside, it could bolster confidence in the Chinese recovery narrative, potentially leading to a rally in risk assets. Watch for key levels in the yuan and commodities that may react sharply to this data release, especially in the immediate hours following the announcement. The market’s response could set the tone for trading strategies in the coming weeks, so be prepared for volatility around this release.