FxWirePro: AUD/USD trades weaker after RBA Lowe's downbeat comments, ignores upbeat China CPI data

AUD/USD chart - Trading View 

AUD/USD was trading 0.35% lower on the day at 0.7686 at around 04:30 GMT, outlook for the day remains neutral.

The Australian dollar dented as RBA’s Lowe indirectly cites inflation fears, ignores upbeat China CPI data.

China’s headline Consumer Price Index (CPI) printed at 0.6% month-on-month from 0.4% prior, while rising 1.7% year-on-year versus 1.5% expected. 

Further, the Producer Price Index (PPI) recovered more than -0.4% forecast to -0.2%. AUD remains largely unimpressed.

Australia’s Westpac Consumer Confidence grew past-1.8% forecast and 1.9% prior readings to flash 2.6% but failed to lift AUD/USD.

Market sentiment sours ahead of the key US coronavirus (COVID-19) relief bill, keeping the pair depressed.

Technical bias for the pair is neutral. Price action extends choppy trade around 55-EMA and daily cloud top.

Passage of the US aid package is the key, markets likely to tread cautious. Focus also on key US Consumer Price Index (CPI) for impetus.