AUD/USD Price Analysis: Chinese CPI anticipated, but may not be what the bulls are hoping for

• AUD/USD is firming from 4-hour support ahead of Chinese inflation data. 
• The bulls will be looking for a discount at this juncture.
• Further demand could be on the cards in the coming sessions with eyes on 0.72 the figure. 

As per the New York analysis from Tuesday's session, AUD/USD Price Analysis: Bulls looking for a break to test 0.7180 H4 resistance, where the 21-EMA was cited as a key support area, the bulls will be looking to Chinese data for a lift at the top of the hour. However, there are expectations of the data to emain weak in January despite intense supply-side pressures.

''CPI will be dampened by another drop in pork prices, capping overall food price inflation, as well as a high base. Industrial commodities, steel and oil prices continued to push higher over the month, while PMI input prices rose to their highest since October, suggesting any moderation in PPI will be limited,'' analysts at TD Securities argued.

Nevertheless, AUD/USD is breaking to the upside with the price holding above H4 21-EMA. This is seen as an encouraging development for the bulls ahead of the data. Eyes will be on 0.7180s and then 0.73 the figure as a critical milestone in the pursuit of a higher daily high. 

AUD/USD prior analysis

AUD/USD live market

The price has respected the 21 EMA and support structure as illustrated above and bulls will be seeking to engage at a discount at this juncture. 

AUD/USD weekly chart

On the other hand, the bears will note the weekly chart's resistance and bulls will need to overcome this near 0.7180.