MarketPR
The Australian dollar retreated to 0.6480 against the US dollar during Tuesday's Asian session, down from 0.6520 the previous day, as traders trimmed exposure ahead of China's February consumer price index release.
The move pushed AUD/USD through the 0.6500 handle, extending Monday's losses and pulling broader risk sentiment lower across the region — putting $ASIA and $FIAT positions on watch.
China CPI: A Deflationary Fault Line for the AUD Economists surveyed by Bloomberg forecast China's February CPI at 0.3% year-on-year, cooling from the 0.5% reading in January.
The figure carries outsized weight for the Australian dollar because China is Australia's largest trading partner, and a sub-consensus print would signal that domestic demand in the world's second-largest economy remains subdued.
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