- China data hits expectations and ticks all of the boxes, the AUD remains steady.
- Aussie-centric data continues to see little meaningful impact as US Dollar flows remain the key driver in the broader markets.
- The AUD/USD remains wrapped up in a tight constraining pattern near 0.7135, sticking close to the week’s peaks near 0.7150 as Aussie traders struggle to develop near-term momentum as quiet markets unwind for Tuesday.
China’s CPI/PPI double-header came in largely as expected, with China’s PPI managed to eke an extra point onto the board to print at 3.6% versus the 3.5% forecast, cutting down the anticipated drawdown from the last reading of 4.1%, and the mood in the Pacific-Asia session should remain on-balance as China manages to keep sloughing off the majority of downside pressure from their ongoing trade war with the US, though weak points both within China and abroad are keeping broader markets uneasy.
Following early Tuesday’s no-change showing for the Reserve Bank of Australia (RBA), the Aussie is set to continue being led by the nose through the markets by Greenback flows, although Thursday will be seeing another iteration of the Australian Unemployment Rate to round out the week’s limited AUD-focused data.
AUD/USD levels to watch
The Aussie remains middling through the early week, though successive higher lows from early October’s bottom at 0.7050 will keep buyers testing the high side as the pair looks to regain the 0.7200 key figure as downside resistance continues to build-in from the 200-period H4 moving average at 0.7170.