AUD/USD falls after Chinese data
|It has been a bad day so far for the Antipodean currencies and the AUDUSD pair was down 0.2% during the US session, trading at around 0.6850, while the NZDUSD pair was more than half a percent weaker, hovering near the 0.66 handle.
Earlier in the day, Chinese year-on-year inflation numbers came below expectations and the December number stayed at 4.5% (against expectations of 4.7%), while the monthly figure printed -0.5%. Chinese inflation has accelerated sharply over the previous months, mainly due to the loosening of monetary policy.
Additionally, the Australian trade balance rose notably from 4,502 million AUD to 5,800 million AUD, which failed to spark any buying interest today.
Sentiment has been positive today, evident from the rising stocks and falling JPY, which might be beneficial for the greenback, as it has a higher rate than the Australian dollar.
Technical speaking, the AUDUSD pair is testing the 0.6850 support, where the lows of the current consolidation range are located. If the pair declines below this level, we could see a decline toward 0.6800.
On the other hand, should buyers reappear, a rally toward the upper zone of this range might happen, which is at around 0.6885.
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