Australian Dollar Eyes Chinese Economic Data, Will AUD/USD React

The Australian Dollar is in focus to kick off the week, with several economic data prints due out of China. Markets are coming off a mixed week, the safe-haven US Dollar gained against most of its peers, while US equity markets fell as Treasury yields increased. The risk-sensitive AUD/USD pair fell nearly 1% last week, with the bulk of weakness coming after a hot inflation (CPI) print out of the United States.

Rising prices across the global economy is a centerpiece issue that has investors attempting to gauge the impacts on economic activity and central bank policy over the coming months. Japan will report inflation data for October later this week. This morning, the island nation’s third-quarter gross domestic product data crossed the wires. Output dropped to –3.0% q/q, missing the consensus forecast calling for -0.7%.