Also, from China CPI and PPI data was published. Chinese inflation weakened further in July, adding to the central bank’s recent calls for more “innovative” monetary policies that stress liquidity as opposed to further rate cuts. China’s consumer price index (CPI) came in at an annualized 1.8% in July after slowing to 1.9% in June, the National Bureau of Statistics said in a report on Tuesday. The reading was in line with the median estimate of economists. Compared to June, consumer inflation rose 0.2%. The People’s Bank of China (PBOC) targets annual inflation at around 3%.
Rising food costs supported inflation through the first half of the year, with CPI reaching a nearly two-year high of 2.3% in February. That level would be maintained for an additional two months before weakening again in May. Factory-gate prices declined for a 53rd consecutive month in annualized terms, government data showed on Tuesday. The producer price index (PPI) fell 1.7% in the 12 months through July. The rate of contraction in producer prices has eased in each of the past seven months, a sign that the worst of the manufacturing downturn had passed.
Aussie is currently being traded around 0.7640 level. Pair is likely to find support around 0.76 handle and resistance above 0.7680 area.
