Forex: AUD/USD still below 1.06, little moved post-China CPI

FXstreet.com (Barcelona) - With broadly awaited latest CPI data just released for China at 2.5% on a yearly basis, AUDUSD moves around the 1.0585 level, slightly below recent fresh 4-month high at 1.0601. Slightly higher than expected at 2.3%, figure shows an improvement from previous number, stalling the decline started around 6.5% by mid summer 2011, but far far away from those levels above +25% of CPI seen in China back in late 80's or mid 90's.

PPI came in slightly worse than anticipated at -1.9% when -1.8% was expected, on the yearly basis, while CPI month to month came in at +0.8%, higher than the +0.5% expected. Local share markets are showing mixed results despite SP500 close in NY at fresh 5-year highs, along with recent stimulus package just approved in Japan, which has increased risk appetite and pushes Nikkei index to highest levels since Feb 2011, last around the 10800 points mark, up +1.34% for the day.

Immediate resistance to the upside for AUDUSD shows at recent fresh 4-month highs 1.0601, followed by Aug 09 highs at 1.0616, and Sept 14 highs at 1.0625. To the downside, nearest term support lies at yesterday's NY session lows 1.0563, followed by Jan 09 highs at 1.0535, and Jan 02/03 highs at 1.0524/7.