AUD Holds Strong Amid China Inflation Data

The Australian Dollar remains strong against the US Dollar following China's inflation data release. The AUD/USD pair trades around the 0.7220-0.7225 area, just below its highest level since May 14.

China's headline Consumer Price Index (CPI) climbed 0.8% in August from a year ago, exceeding expectations of a 0.3% increase. The Producer Price Index (PPI) jumped 3.8% YoY in August, also surpassing estimates.

The data, however, fails to provide any impetus to the China-proxy Aussie, though a combination of factors continues to act as a tailwind for the AUD/USD pair.