The Consumer Price Index that is released by the National Bureau of Statistics of China has arrived as follows:
China December CPI +1.5% YoY (Reuters poll +1.8% ) vs prior 2.3%
China December CPI -0.3% MoM (Reuters poll +0.2%) vs 0.4% prior.
Additionally, the Producer Pirce Index was released as follows:
+10.3 pct YoY (Reuters poll +11.1 pct)
China December PPI -1.2 pct from the previous month.
AUD/USD impact
The price of AUD/USD is unchanged on the data.
AUD/USD Price Analysis: Bulls run-up to a wall of H4 resistance
The price is on the verge of a move to the support of the W-formaiton's neckline.
About the Consumer Price Index
The Consumer Price Index is released by the National Bureau of Statistics of China. It is a measure of retail price variations within a representative basket of goods and services. The result is a comprehensive summary of the results extracted from the urban consumer price index and rural consumer price index. The purchase power of the CNY is dragged down by inflation.
The CPI is a key indicator to measure inflation and changes in purchasing trends. A substantial consumer price index increase would indicate that inflation has become a destabilizing factor in the economy, potentially prompting The People’s Bank of China to tighten monetary policy and fiscal policy risk. Generally speaking, a high reading is seen as positive (or bullish) for the CNY, while a low reading is seen as negative (or Bearish) for the CNY.
