China CPI misses market consensus. Prior in January, PPI fell to its slowest pace in seven months.
Market sentiment drops amid mixed concerns about Russia and anxiety ahead of US Retail sales, FOMC Minutes.
AUD/USD maintains the day's recovery from a one week low, while the bids to renew intraday highs around 0.7160 rise 0.13% in the midst of Wednesday's Asian session.
The Aussie couple cheers the hope of no further escalation of the Russia-Ukraine tussles, after Moscow pulled back some of its soldiers from the borders. They also ignore China inflation data.
It is worth noting that both Joe Biden and Russian President Vladimir Putin have commented on the geopolitical risks. However, Russia's Putin expressed dissatisfaction at the way negotiations are going about Ukraine's NATO membership, while US President Biden stated, " Russian attacks on Ukraine still very much possible."
China's headline Consumer Price Index(CPI) fell below 1.0% YoY forecasts, with 0.9% mark, as opposed to 1.5% before. The Producer Price Index (PPI), which was 9.5% and 10.3% respectively, also fell to 9.1% YoY.
Despite the disappointing China inflation figures, the hopes that the People's Bank of China will continue fueling markets have supported the Asia-Pacific equities of late. These headlines are also linked to Russia. The US 10-year Treasury yields, and stock options are still on the backfoot as of press time.
The mixed news from Russia and the downbeat China data should make AUD/USD bears more cautious ahead of the January Retail Sales (US) Minutes.
The 38.2% Fibonacci Retracement (Fibo.), which is maintained a bounce for AUD/USD, continues to support the USD/AUD pair. The January 13-28 downturn was around 0.7100 amid firmer MACD signals, and a steady RSI.
The Aussie pair is still below the support line that was established on January 28th, at 0.7185. This suggests that buyers are cautiously below this hurdle. The convergence of the 50 DMA and a trend line that descends from January 20 close to 0.7170 is also an upside hurdle.