- China's soft Consumer Price Index (CPI) and Producer Prince Index (PPI) indicated deflationary risks.
- CPI came in at 0.6% YoY vs 0.5% expected, while PPI declined by 1.8% YoY vs the 1.5% expected.
- Food prices drove CPI inflation higher, but core inflation remains subdued at 0.3% YoY.
- Deflationary risks persist, highlighting the need for fiscal measures to boost consumption.
- On the US side, the Greenback recovered further after mixed labor market figures reported on Friday.
- The focus is now on Wednesday’s CPI figures from August.
- Monetary policy divergences between the Federal Reserve and the Reserve Bank of Australia may support the AUD/USD downside.
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