Australian Dollar Higher After Strong China Consumer Inflation Data

The Australian dollar climbed against its major counterparts in the Asian session on Monday, after a data showed that China's consumer inflation accelerated in January due to the coronavirus outbreak.

Official data showed that consumer prices gained 5.4 percent year-on-year in January. That exceeded forecasts for an increase of 4.9 percent following the 4.5 percent gain in December.

The bureau also said that producer prices sank 0.5 percent year-on-year versus expectations for a flat reading following the 0.5 percent decline in the previous month.

Investors also monitored developments on the coronavirus outbreak.

The death toll in China due to the epidemic jumped to 908 and the number of confirmed cases has risen over 40,000, Chinese health officials said today.

The aussie rose to 0.6707 against the greenback and 73.67 against the yen, from its early lows of 0.6665 and 73.05, respectively. If the aussie rises further, 0.68 and 75.00 are seen as its next resistance levels against the greenback and the yen, respectively.

The aussie climbed to a 1-1/2-month high of 1.0461 against the kiwi and held steady thereafter. The pair had ended last week's deals at 1.0433.

Reversing from its early low of 1.6424 against the euro and a 1-week low of 0.8867 against the loonie, the aussie gained to 1.6331 and 0.8916, respectively. The next possible resistance for the aussie is seen around 1.61 against the euro and 0.91 against the loonie.

Looking ahead, Swiss CPI for January is due at 2:30 am ET.

Eurozone Sentix investor sentiment index for February is scheduled for release in the European session.

Canada housing starts for January are set for release at 8:15 am ET.

Fifteen minutes later, Canada building permits for December will be released.