China CPI: YoY actual 0.2% (forecast 0.2%, previous 0.1%, AUD steady

The China Consumer Price Index that is released by National Bureau of Statistics of China has been released as follows:

• CPI YoY actual 0.2% (forecast 0.2%, previous 0.1%).
• PPI YoY actual -4.6% (forecast -4.3%, previous -3.6%) 

AUD/USD update

AUD is unchanged vs the US Dollar on the data at 0.6707 currently on the release.

The bears are moving in, however, as per the 4-hour chart, and eye the neckline of the W-formation. 

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.