GBP/AUD: Aussie Advances on China’s CPI, Tech Firms Back to Work

GBP/AUD is departing the high of last week. Currently, the pair is trading at 1.9222, down 0.39% as of 6:55 AM UTC. The next support level will be at around 1.9190, which coincides with last week’s bottom.

AUD is getting traction amid hopes that the spread of the coronavirus outbreak might be slowing

The Lunar New Year in China has ended and many big companies are back to work, while the government lifted some travel limitations. Also, China recently released better-than-expected consumer price inflation (CPI) and steady producer price inflation (PPI) figures. Note that China is by far the largest trading partner and source of tourists for Australia. Thus, the AUD is quite responsive to any China-related news.

Foxconn and Tesla received permission to resume work either partially or fully. Foxconn, which produces Apple, Huawei, and Amazon products, was allowed to restart operations at a plant, one person familiar with the matter told Reuters. The news came hours after reports that China had blocked the restart at Foxconn plants.

China’s PPI rose 0.1% in January compared to the same period in 2019, the National Bureau of Statistics said earlier today, which is in line with analysts’ expectations. In December, the indicator fell 0.5%.

The consumer prices rose 5.4% in January year-on-year, much better than analysts’ expectations of a 4.9% increase and following a 4.5% rise in December.

Prices were driven by the Lunar New Year holiday and the coronavirus outbreak. Food prices jumped 20.6% while pork prices surged 116%.

The death toll from the new virus has exceeded 910. On Sunday alone, 97 people died in mainland China, which is the largest death toll in a single day.

A group of experts led by the World Health Organization (WHO) was arriving in Beijing today to help the government handle the outbreak.

WHO chief Tedros Adhanom Ghebreyesus recently said that there had been instances when the virus transmitted from people who hadn’t traveled to China.

“The detection of a small number of cases may indicate more widespread transmission in other countries; in short, we may only be seeing the tip of the iceberg,” he tweeted.

Currencylive.com is a news site only and not a currency trading platform.

Currencylive.com is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.