AUD/USD: consolidating at the upper end of the range
|AUD/USD Current price: 0.7422
- Chinese inflation data boosted the Aussie but fell short of triggering a bullish breakout.
- US to offer some minor macroeconomic readings that won't interrupt sentiment-related trading.
The AUD/USD pair peaked at 0.7452 at the beginning of the Asian session, underpinned by solid Chinese inflation data that spooked, at least temporarily, fears about the effects on the economy of the trade war. July inflation was up 0.3% MoM in July, while from a year earlier, inflation rose by 2.1%, both above previous readings and market's forecasts. The yearly Producer Price Index also beat expectations printing 4.6% vs. the 4.4% forecasted. The pair, however, was unable to sustain gains and pulled down to 0.7413, as the greenback found some market favor which extended into the European opening.
Across the FX board dollar's recovery was shallow, with no critical level being challenged, before its strength eased, somehow indicating that uncertainty prevails, amid renewed trade war concerns and the absence of macroeconomic headlines seen all through the week. The US will offer today some minor figures, including July PPI data and weekly unemployment claims, with loads of first-tier data expected for this Friday.
In the meantime, the AUD/USD pair consolidates at the upper end of its latest range, holding firmly above 0.7400, but still meeting sellers on spikes to the 0.7440/50 region. The 4 hours chart shows that a bullish 20 SMA contains the downside, with buyers surging on approaches to it, but also that technical indicators continue easing within positive levels, with the Momentum pressuring its mid-line and the RSI currently at 53. A break through 0.7400 could see the pair approaching 0.7370, while only below this last, it will turn bearish. An advance through the mentioned resistance could see the pair extending up to 0.7483, July's high, with bulls taking the lead on gains beyond this last.
Support levels: 0.7400 0.7370 0.7330
Resistance levels: 0.7445 0.7485 0.7510
View Live Chart for the AUD/USD
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