AUD/USD stays depressed around the intraday low even as China prints welcome inflation figures for December. China’s CPI grew 0.2% YoY, PPI recovered to -0.4% on yearly format. Risks dwindle mid virus woes, Sino-American tension and US stimulus hopes. A light calendar in Asia keeps risk catalysts on the driver’s seat. AUD/USD ignores more than expected China inflation numbers while holding the lower ground near 0.7710, down 0.62% intraday, during Monday’s Asian session. The reason for the quote’s latest weakness could be traced from the risk-off mood as well as the US dollar’s sustained recovery moves. China’s Consumer Price Index (CPI) and Producer Price Index (PPI) for December crossed upbeat forecasts while flashing 0.2% and -0.4% YoY figures. It should be noted that the monthly CPI 0.7% versus 0.4% expected -0.6% prior. Read: China Consumer Price Index: +0.2% Y/Y vs +0.1% expected, AUD/USD meets support Earlier in the day, Australia’s final reading of November’s Retail Sales rose past-7.00% forecast to 7.1% whereas a monthly inflation report from the Melbourne Institute grew beyond 1.3% YoY to 1.5%. However, challenges to risks weigh on the AUD/USD pair off-late. Challenges to the sentiment can be spotted via worsening coronavirus (COVID-19) conditions and the Sino-American tussle, not to forget a drive to impeach US President Donald Trump. Although Greater Brisbane is relieved from activity restrictions after a three-day lockdown while finding zero cases of the pandemic, chatters concerning the spread of the virus strain, found in the UK and South Africa, weigh on risks. Further, the US is said to be considering more sanctions on China, per Reuters. The Trump administration recently raised bars for doing business with eight Chinese applications and pushed the New York Stock Exchange (NYSE) to rethink over the delisting of stocks from Beijing. Also, Goldman Sachs and Morgan Stanley are considering reducing holdings from Hong Kong due to the same reason. Elsewhere, Democrats are tightening their belts to impeach Trump with US House Speaker Nancy Pelosi showing readiness to put forward a proposal in front of the policymakers. Against this backdrop, the S&P 500 Futures decline 0.40% while the US Dollar index (DXY) jumps to the highest since December 23. Moving on, risk catalysts will be the key and hence further AUD/USD downside is expected. However, more clarity over the US fiscal stimulus can placate sellers. Technical analysis In addition to the 0.7700 round-figure, a 10-week-old rising support line, around 0.7675, also restricts short-term AUD/USD downside. Meanwhile, April 2018 top surrounding 0.7815, the recent high of 0.7820 holds the gate for fresh run-up targeting March 2018 peak surrounding 0.7920. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US Dollar Index Price Analysis: DXY refreshes two-week high, bulls eye 200-bar SMA FX Street 1 year AUD/USD stays depressed around the intraday low even as China prints welcome inflation figures for December. China’s CPI grew 0.2% YoY, PPI recovered to -0.4% on yearly format. Risks dwindle mid virus woes, Sino-American tension and US stimulus hopes. A light calendar in Asia keeps risk catalysts on the driver’s seat. AUD/USD ignores more than expected China inflation numbers while holding the lower ground near 0.7710, down 0.62% intraday, during Monday’s Asian session. The reason for the quote’s latest weakness could be traced from the risk-off mood as well as the US dollar’s sustained recovery moves. China’s Consumer Price Index… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.