AUD/USD Gains on Stable China Inflation, 100-DMA Eyed
The Australian dollar gained against the USD after data showed China inflation figures, which was in line with expectations, indicating signs of a rebound in the Chinese economy. China remains the largest market for Australia, in terms of exports of dairy products and other commodities. Signs of growth in China, would add to positive investor sentiments in the AUD, on prospects of higher export income. Also, the AUD/USD is eyeing a 100-day moving average of 0.7348.
China April consumer price index-led inflation stood at -0.2%, in line with market expectations of -0.2%, while producer price index registered a marginal rise of -3.4%, against expectations of -3.8%.
A slight upswing in the Chinese macroeconomic data boosted investor sentiments, adding to the risk appetite in the high-yielding Australian dollar. Also, a tad down overseas oil prices added to boost confidence in the commodity currency.
At 6:20GMT, West Texas Intermediate fell 0.07% to $43.42/bbl on the NYMEX, while Brent crude oil registered 0.37% gain on the ICE futures exchange.
The next in focus, remains the United States JOLTS jobs opening data and Federal Reserve Official Bullard’s speech, which will direct the way further for the AUD/USD. At 6:20GMT, AUD/USD rose 0.10% at 0.7323 against previous close of 0.7317.