AUD/USD continues to trade in the red near 0.6955 following the mixed Chinese inflation figures. The consumer price index (CPI) rose at annualized rate of 2.7% in May as expected, having risen by 2.5% in April. Meanwhile, factory-gate prices or producer price inflation growth decelerated to 0.6% in May from 0.9% in April. The People’s Bank of China has room for targeted rate cuts, according to China Securities Journal. However, a sustained uptick in the CPI will likely complicate matters for the central banks. Further, the PPI deceleration is bad news for the commodity currencies like the AUD. The AUD, therefore, ... (full story)