China is set to release its Consumer Price and Producer Price Indices in less than an hour. Analysts don't expect it to create much on an impact particularly on the aussie as inflation isn't much of a great concern in the country at the moment.
China's CPI is expected to rise by 2.3% over the past 12 months, while a 0.7% growth is expected over the past month. Meanwhile, the PPI is seen to contract by 1.7%.
The aussie, which took a hit from yesterday's poor Australian employment data, has slowly made a recovery since yesterday. The AUD/USD pair has since been able to return to the 0.9000 zone. The greenback also had something to do with this as it has been largely weak yesterday and was further compounded by weak US data. It is yet to be seen, however, how the market will react to the Chinese CPI and PPI data later.
The AUD/USD pair is currently trading at 0.8992, with initial resistance seen at 0.9049, followed by 0.9072. Meanwhile, initial support is at 0.8986, followed by 0.8964.
The EUR/USD pair traded fairly flat yesterday despite the weakness of the greenback. Late in the US session, the pair moved within a very tight range between 1.3675-1.3685.
US Initial Jobless Claims came out worse than expected at 339K versus the projected 330K. Previously, the number was at 331K. This led to a weaker greenback yesterday.
The pair is currently trading at 1.3680, with initial resistance seen at 1.3623, followed by 1.3657. Meanwhile, initial support is at 1.3531, followed by 1.3497.
The USD/JPY pair made a sharp rise near the 102.40 area at the opening of the Asian session as the Nikkei opened up at 0.02%. The spike was short-lived, however, as the pair is currently on a downturn and is trading at 102.20. Initial resistance for the pair is at 102.39, followed by 102.65. Meanwhile, initial support is at 101.49, followed by 101.24.
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