China April Producer Price Index inflation (market f/c -2.5%) and Consumer Price Index were both expected to soften, with producer prices slipping further into deflation. The data arrived as follows: China CPI / PPI CHINA APRIL PPI -3.1% Y/Y (REUTERS POLL -2.6%). CHINA APRIL CPI +3.3% YoY (REUTERS POLL +3.7%). AUD/USD reaction AUD/USD was already lower on the news of trade wars – more on that here: Australian beef processors suspended in China trade escalation. AUD/USD is grounding at the lows on the data, a muted reaction so far. AUD/USD trades at 0.6447 post data. (full story)