The pair trading higher during Tuesday’s Asian session following the release of consumer price index and producer price index data out of China. National Bureau of Statistics showed the country’s PPI fell 1.9% in March compared with the year-earlier period. That follows a 1.6% drop in February. Analysts expected a 2% decline. On a month-over-month basis, China’s PPI was unchanged. China’s CPI fell to -0.9% compared with the -0.6% analysts expected. On a year-over-year basis, China’s CPI rose 2.1% compared with the estimate calling for a 2.4% increase. On Monday, Australian Prime Minister Julia Gillard announced direct currency trading between the Aussie and renminbi will begin later this week. The Australian dollar joins only the U.S. dollar and Japanese yen as currencies that trade directly with the renminbi. AUD/USD is higher by 0.20% at 1.0435, EUR/AUD is up 0.21% at 1.2520, AUD/JPY is higher by 0.22% at 103.73, AUD/NZD is down 0.15% at 1.2291.
EasyForexNews Research Team