China's Consumer Price Index has been released as follows: 

• CPI 1.0% YoY (expected 1.9%).
• PPI -1.4% YoY (exp. -1.3%).
• CPI MoM 0.5% vs. 0.2% exp and 0.8% prior.

AUD/USD update

 AUD/USD is tucked in below 0.6600 in the Asian session and has shown little reaction to the data thus far. Instead, markets are fixated on prospects of higher rates by the Federal Reserve (Fed) which has weighed on risk appetite this week.

About China Consumer Price Index

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.