AUD/USD Focuses on China CPI at the Start of a Busy Week

The Asia-Pacific trading week begins with the Australian Dollar taking center stage. Eyes remain on China CPI figures, which will be published today at 1:30 GMT. AUD/USD hit a high in the previous week only to lose those gains in the coming times.

Shanghai has entered into the third week of its lockdown, and residents find it difficult to overcome the pandemic with authorities struggling to control the cases. The effect has spread to the Crude Oil segment as it faces pressure due to the lockdown.

AUD/USD Eyes China CPI

Analysts estimate a rise of 1.2% Year-on-Year basis for China’s CPI. The estimate is based on a survey that Bloomberg conducted.

If China’s CPI rises 1.2% YoY, then it would increase 0.2% compared to February, which registered a figure of 0.9% YoY. The People’s Bank of China is looking to ease the rate this week irrespective of how high the CPI is in the graph.

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Since the economies of China and Australia are linked to each other, the Australian Dollar is expected to respond to any new policy that China adopts.

An increase in the rate of interest by the US Federal Reserve will retain the center stage, and it reflects the broader market and is more likely to impact the AUD/USD market. The US Dollar has succeeded in rising to a new high against the Japanese Yen.

The Energy Information Administration reported that it has Crude Oil stock ready for dispatch. 

Shanghai’s lockdown affects Crude Oil’s demand and supply chain, especially in Asia, and global production has already hit a lot due to the Russia-Ukraine conflict.

Other aspects noticed by the traders are the job report for March in Australia and the decision taken by the European Central Bank. The week gets more in its pocket with data related to inflation in the United States of America being announced in the coming days.

Analysts estimate that there could be a drop at 8.5% YoY, a rise from the 7.9% YoY that it touched in February 2022.

The US Dollar is expected to trade at 100 against the basket of peers. AUD/USD, specifically, is trading at its 20-day Simple Moving Average. If there is a break in the 20-day Simple Moving Average, the price could fall to the 50-day Simple Moving Average.