The Australian Dollar (AUD) has been trading near a multi-day low against the US Dollar (USD) below 0.6600, and the upcoming release of China inflation data could have a significant impact on the exchange rate. Inflation data is an important indicator of economic health, and as China is Australia’s largest trading partner, any changes in Chinese inflation can have a direct effect on the AUD/USD exchange rate.
China’s consumer price index (CPI) measures the level of prices in the country, and is an important indicator of inflation. The CPI is expected to rise from 2.7% in August to 3.0% in September, which would be the highest level since May 2018. A higher than expected CPI reading could be positive for the AUD/USD exchange rate, as it would indicate that the Chinese economy is doing well and could lead to increased demand for Australian exports.
On the other hand, a lower than expected CPI reading could be negative for the AUD/USD exchange rate, as it would suggest that the Chinese economy is slowing down and could lead to reduced demand for Australian exports. In addition, a lower CPI reading could also lead to a decrease in Chinese consumer spending, which could further reduce demand for Australian goods and services.
Overall, the upcoming release of China’s inflation data could have a significant impact on the AUD/USD exchange rate near its multi-day low below 0.6600. A higher than expected CPI reading could be positive for the exchange rate, while a lower than expected reading could be negative. Investors should keep an eye on the data release and be prepared to adjust their positions accordingly.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- Platoblockchain. Web3 Metaverse Intelligence. Knowledge Amplified. Access Here.
- Source: Plato Data Intelligence: PlatoAiStream
Clarida Expects No Fed Blackout and Forecasts One or Two Rate Hikes Ahead, According to Forexlive.
Richard Clarida, the Vice Chairman of the Federal Reserve, recently stated that he does not expect a Fed blackout and...