Bitunix Analyst: US August PPI Unexpectedly Declines, Market Focused on CPI and Rate Cut Pace

September 11: The U.S. Bureau of Labor Statistics announced the previous day that the August Producer Price Index (PPI) decreased by 0.1% on a monthly basis unexpectedly (with an expectation of +0.3%), and the annual growth rate slowed down to 2.6% (previously 3.1%), indicating that businesses might be absorbing some of the costs of import tariffs. Additionally, later on the same day, the August Consumer Price Index (CPI) is scheduled to be released. The market widely anticipates that the annual growth rate will rise to 2.9%, while the core CPI is expected to show a 3.1% annual increase. In the context of significant downward revisions to labor market data and signs of economic slowdown, this inflation report will be the final key data release before the Federal Reserve's September meeting, which will influence the subsequent pace of interest rate cuts. Recently, several institutions have pointed out that tariff costs and rising food prices may continue to drive prices higher, and there are also signs of a rebound in services inflation. If the CPI data exceeds expectations, the market may reassess the scope for further interest rate cuts, and there are concerns about stagflation risks. Technically, in the short term, the range around $114,000 is a crucial area for liquidation of BTC and serves as a major resistance zone in the near term. If the data leans towards being bullish and pushes the price above this range, it is likely to accelerate short covering and challenge the liquidity area above $115,000. Conversely, if higher-than-expected inflation data triggers a stronger U.S. dollar and doubts about postponed rate cuts, the $111,000 range is the first support level for BTC. A breach of this level may lead to a retest of the liquidity zone at $108,500 - $109,000. Bitunix analysts suggest: Against the backdrop of the unexpected decline in PPI but with the continuous upside risk in CPI, traders are advised to reduce their positions before the release of the CPI. They should closely monitor the performance of the $114,000 BTC resistance zone and the $111,000 support level to be prepared for potential significant volatility.