The Australian Dollar remains under pressure near 0.7240 USD as traders await China’s April CPI and PPI figures.
The AUD/USD pair traded around 0.7240 during Asian hours, remaining in negative territory despite early gains. Investors are focused on China’s upcoming Consumer Price Index data, which could influence the Australian Dollar due to strong trade ties between the two nations.
China’s CPI is expected to rise 0.8% year-over-year in April, down from March’s 1.0% increase. Meanwhile, the Producer Price Index is forecast to climb 1.5% after a 0.5% gain in the prior month. The US Dollar’s strength, driven by geopolitical tensions, has added downward pressure on the pair.
Risk aversion grew after US and Iranian officials dismissed each other’s peace proposals, raising concerns over Middle East stability. Safe-haven demand for the USD may continue to weigh on AUD/USD in the near term.