Search ForexCrunch
  • AUD/USD remains mildly weak after China’s March month CPI/PPI drop below downbeat forecasts.
  • Risk-tone struggles for clues amid coronavirus crisis, Fed Chair Powell cited fears previous.
  • US inflation data, virus updated might entertain traders during the Good Friday’s calm sessions.

AUD/USD pays a little heed to China’s downbeat inflation data for March while taking rounds to 0.6320 following Beijing open on Friday. Even so, the pair stays under pressure amid challenges to the risk.

China’s March month Consumer Price Index (CPI) and Producer Price Index (PPOI) data fell below forecasts to 4.3% and -1.5% respectively on the YoY basis.

Read: China’s CPI rises 4.3% YoY in March, misses estimates

It’s worth mentioning that Good Friday holidays in Australia and the major part of the world limit the Aussie pair’s reaction to the downbeat China data.

The pair’s recent weakness could be attributed to actions from the US Centers for Disease Control and Prevention (CDC) as well as the Fed Chair’s worrisome statements.

However, US President Donald Trump’s readiness to help the Americans fight the coronavirus (COVID-19) seems to help the risk-tone. While portraying the risk, Japan’s TOPIX slipped below 1,400 mark, down 0.70%, to currently trade around 1,407.

Moving on, although Good Friday holidays in most markets are likely to limit the pair’s moves during the rest of the day, US inflation data is up for publishing and may offer intermediate moves.

Technical analysis

Failures to cross 50-day SMA, currently near 0.6385, drag the quote towards the March-end top surrounding 0.6215. On the upside break of 0.6385, February month low near 0.6435 can challenge the bulls.