AUD/USD edges lower to around 0.6305 in Monday’s early Asian session.
China’s February CPI fell into negative territory for the first time since January last year.
US Nonfarm Payrolls rose by 151,000 in February vs. 160,000 expected.
The AUD/USD pair weakens to near 0.6305 during the early Asian session on Monday. The disappointing Chinese economic data over the weekend weighs on the China-proxy Australian Dollar (AUD). However, the concerns over a looming slowdown in the US economy might help limit the pair’s losses.
Data released by the National Bureau of Statistics on Sunday showed that China’s Consumer Price Index (CPI) fell by 0.7% YoY in February, compared to 0.5% growth in January. This figure came in softer than the estimation of a 0.5% decline. On a monthly basis, Chinese CPI inflation came in at -0.2% in February versus January’s 0.7%, softer than -0.1% expected.
Meanwhile, the country’s Producer Price Index (PPI) declined 2.2% YoY in February, following a 2.3% fall in January. The data came in below the market consensus of -2.1%. Deflationary pressures continue to weigh on the world’s second-largest economy, which exerts some selling pressure on the Aussie.
On the other hand, the cautious stance from the Reserve Bank of Australia (RBA) might support the AUD against the US Dollar (USD). The RBA is cautious about lowering the benchmark interest rate further and the decision to reduce its rate in February does not mean that the central bank is committed to cutting again at coming meetings, the minutes of the RBA meeting held on February 17 and 18 showed.
The US Nonfarm Payrolls (NFP) rose by 151,000 in February, followed by the 125,000 increase (revised from 143,000) seen in January, the US Bureau of Labor Statistics (BLS) showed Friday. This figure came in weaker than the market expectation of 160,000. The weaker-than-expected job growth in the United States could undermine the Greenback and act as a tailwind for the AUD/USD.
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