AUD/USD analysis: Chinese inflation to set the tone
|AUD/USD Current price: 0.7675
- Rise in Chinese imports backed the Aussie.
- Australian and Chinese data to set the tone in the Asian session.
The Australian dollar edged higher against its American rival, ending the day near a daily high of 0.7666. The Aussie found support at the beginning of the day on Chinese trade data, as despite the country's surplus widened by less-than-expected in October, imports rose beyond market's forecasts. China reported a trade balance of $38.2B in dollar terms, anyway above previous $28.61B. Imports rose by 17.2% in the same month, beating expectations of 16.0%, while exports increased by 6.1%, below previsions of 7.9%. Higher gold prices are also supporting the commodity-linked currency. Australia will release some housing figures during the upcoming Asian session, but attention will center on Chinese October inflation, seen up by 0.2% in the month, against previous 0.5%. A disappointing outcome will likely put the AUD under pressure. The 4 hours chart shows that the intraday recovery stalled right below the 23.6% retracement of its latest downward move, which is not enough to confirm more gains ahead, moreover as technical indicators lack directional strength within neutral territory. The pair could be forming a double bottom in the 0.7630 region, but the figure will be confirmed only on a break above 0.7729, the high set earlier this month.
Support levels: 0.7625 0.7590 0.7555
Resistance levels: 0.7685 0.7730 0.7770
View Live Chart for the AUD/USD
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