AUD/USD Review: China's CPI beat gives the Aussie room to breath

• The Aussie catches a ride on China numbers as trade wars have less effect than initially feared.
• The RBA's Friday statement is unlikely to deliver much news for the AUD/USD.

The AUD/USD is trading into 0.7435 heading through Thursday's trading after being propped up by better-than-expected inflation figures from China, and Aussie bulls are pushing hard to get the pair up and over the 0.7440 barrier.

The AUD is seeing little intrinsic reason to post gains these days, with the Reserve Bank of Australia (RBA) wrapping up a second straight year of no policy adjustments and the Australian economy continuing to middle on lop-sided growth figures, but the Aussie got a helping hand from China today, when the Chinese CPI figures posted mild gains when broader markets were forecasting contractions on trade war pain; the US-China tariff battle appears to be causing much less trade damage to the Chinese economy than most have been expecting, at least for now, and the Aussie is seeing some much-needed pickup on the positive figures from China.

The next round of RBA info is due early Friday at 01:30 GMT with the central bank's latest Monetary Policy Statement; the RBA has been brutally middle-of-the-road for some time, and traders will be giving the release a customary once-over looking for adjustments to the RBA's rhetoric, but only significant changes to the central bank's outlook will spur meaningful action from AUD traders in either direction.

AUD/USD Technical Analysis

0.7450 marks the level for Aussie bulls to beat and hold, and a failure to successfully push past that technical barrier will see the pair slumping back into familiar lows near 0.7380, with further downside being capped by common swing low points near 0.7350.

AUD/USD Chart, 1-Hour