The Consumer Price Index, released by the National Bureau of Statistics of China, has been released as follows:

• China October PPI -1.3 pct from a year ago (Reuters poll -1.5 pct).
• China October CPI +2.1 pct from a year ago (Reuters poll +2.4 pct).
• China October PPI +0.2 pct from the previous month.
• China October CPI +0.1 pct from the previous month (Reuters poll +0.3 pct).
• China says October food CPI +7.0 pct from a year ago; non-food CPI +1.1 pct.

AUDUSD update

Meanwhile, AUDUSD is testing key hourly support as the US Dollar attempts to firm from daily support. The prior day's lows are located at 0.6443 as an immediate target on a break of the trendline and horizontal resistance:

US Dollar bulls lurking

The price of the DXY has met a critical daily support area. A break here could be strongly beneficial for the commodity complex and the Aussie would be expected to rally. On the other hand, the bears will be noting the weekly template and a mid-weel opportunity to bite into the in-the-money long positions that have been building over several days. 

About the China CPI

The Consumer Price Index is released by the National Bureau of Statistics of China. It is a measure of retail price variations within a representative basket of goods and services. The result is a comprehensive summary of the results extracted from the urban consumer price index and rural consumer price index. The purchase power of the CNY is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. A substantial consumer price index increase would indicate that inflation has become a destabilizing factor in the economy, potentially prompting The People’s Bank of China to tighten monetary policy and fiscal policy risk. Generally speaking, a high reading is seen as positive (or bullish) for the CNY, while a low reading is seen as negative (or Bearish) for the CNY.