Customers shop at a supermarket
China CPI inflation moves off a 5-year low while PPI deflation continues, hitting a 5-year low.Reuters

In China, two measures of price rise moved in opposite directions in February. While consumer price inflation moved off a five-year low, factory gate deflation deepened to a five-year low.

The CPI index rose to 1.4% from a year earlier from 0.8% in January, which was its lowest since late 2009, beating analysts' expectations of 0.9%. Month-on-month, the rate accelerated to 1.2% from 0.3% versus the consensus of 0.8%.

The producer price index fell 4.8% in the second month of the year, its lowest since late 2009, after recording -4.3% in the previous month. Market expectations were for a repeat of the January number.

The Australian dollar continued to slide after stronger than expected Chinese data as the numbers probably reduced the likelihood of additional stimulus measures in the world's second largest economy.

China is preparing itself for lower growth and trade in this year means lower export revenue for Australia.

The AUD/USD slipped to 0.7657 on Tuesday, 10 March from the previous close of 0.7702. The Aussie dollar had fallen 1.6% over the last two weeks and is down 0.8% so far this week.

Weak Australian data and continued strength in the US dollar also have pushed the Aussie currency down. The USD index has jumped to a new 12-year high of 97.91.

Chinese authorities have lowered their target for GDP growth and foreign trade for 2015 to 7% and 6% from 7.5% and 7% respectively from the last year citing easing demand and global weakness.

Data over the weekend had shown China's trade surplus widening to a record high in February with exports rallying sharply and imports plummeting.