“¢ US PPI eases more than expected in April, yearly rate holds steady.
“¢ Disappointing jobless claims data do little to provide any fresh impetus.
“¢ The market focus remains on two-day high-level US-China trade talks.
The AUD/USD pair extended its sideways consolidative price action and remained well within the striking distance of four-month lows set earlier this week.
The pair remained under some selling pressure for the second consecutive session on Thursday and retreated farther this week’s swing high level of 0.7048, touched in reaction to the RBA’s decision to maintain status quo.
The US-China trade standoff continued weighing on the global risk sentiment and has been one of the key factors driving flows away from perceived riskier currencies – like the China-proxy Australian Dollar.
Trade tensions overshadowed the release of the producer price index figures (PPI), which eased more than expected to 0.1% in April as compared to 0.6% previous and held steady at 2.2% yearly rate.
Meanwhile, core PPI – excluding food and energy prices, also eased to 0.2% monthly rate but again held steady on the yearly basis – at .4% and did little to provide any meaningful impetus to the major.
Bullish traders also shrugged off the disappointing release of the US initial weekly jobless claims as the key focus remains on a two-day high-level US-China trade negotiations, starting on Thursday.
Technical levels to watch
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