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

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.

🔗 Source

💡 DMK Insight

China’s upcoming CPI data could shake up global markets, and here’s why: A projected drop from 1.0% in March to 0.8% YoY in April signals potential deflationary pressures. This could impact not just the Chinese yuan but also commodities and equities globally. Traders should be on alert for how this data might influence the People’s Bank of China’s monetary policy. If inflation continues to cool, it could lead to further easing measures, which would likely weaken the yuan and boost demand for safe-haven assets like gold. On the flip side, if the CPI surprises to the upside, it might strengthen the yuan and lead to a risk-on sentiment in global markets. Keep an eye on the 01.30 GMT release; volatility could spike in forex pairs involving the yuan and related commodities. Watch for how major players react, especially if the data deviates significantly from expectations.

📮 Takeaway

Monitor the April CPI release at 01.30 GMT; a lower than expected figure could weaken the yuan and impact global risk sentiment.

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