- AUD / USD remains slightly weak after March of China’s CPI / PPI fell below optimistic forecasts.
- The risky tone is struggling for clues in the context of the coronavirus crisis, said Fed Chairman Powell.
- US inflation data and virus update could keep traders entertained during quiet Good Friday sessions.
The AUD / USD slightly takes into account China’s downward inflation data for March while reducing to 0.6320 after the opening of Beijing on Friday. Despite this, the pair remains under pressure amid the challenges posed by risk.
China’s Consumer Price Index (CPI) and Producer Price Index (PPOI) data for March fell below forecast to 4.3% and -1.5% respectively year on year.
Read: Chinese CPI Rises 4.3% YoY In March, Estimates Missing
It should be mentioned that the Good Friday holidays in Australia and most of the world limit the reaction of the Australian pair to optimistic data from China.
The pair’s recent weakness could be attributed to the actions of the U.S. Centers for Disease Control and Prevention (CDC) as well as worrying statements by the Fed chairman.
However, President Donald Trump’s willingness to help Americans fight the coronavirus (COVID-19) seems to help mitigate the risk. While describing the risk, Japan’s TOPIX slipped below the 1,400 mark, down 0.70%, to trade around 1,407 currently.
Continuing, although the Good Friday holidays in most markets are likely to limit the pair’s movements for the rest of the day, US inflation data is being released and may offer intermediate movements.
Failures to cross the 50-day SMA, currently close to 0.6385, result in trading towards the high in late March surrounding 0.6215. On the bullish break of 0.6385, the February low near 0.6435 can challenge the bulls.