AUD/USD keeps losses as China's PPI growth slows to 3.3%
|- The Aussie dollar is on the defensive, having charted a bearish RSI divergence earlier today.
- China producer price inflation (PPI) or factory-gate price growth slowed more than expected in October.
The AUD/USD is currently trading at 0.7250, representing a 0.10 percent drop on the day, and may drop further on bearish technical setup and dismal China inflation data.
The currency pair charted a bearish divergence of the 4-hour chart relative strength index (RSI) earlier today as it dropped close to 50 pips from the high of 0.73. As a result, the pair could remain on the defensive in the next few hours.
More importantly, the bearish technical setup has likely been bolstered by a weaker-than-expected China PPI release. The October factory-gate inflation gauge came-in at 3.3 percent, missing the estimated print of 3.4 percent and down from the previous month's reading of 3.6 percent.
It is worth noting that a pick-up in China PPI back in mid-2016 had triggered the great reflation trade, helping the commodity dollars like the AUD stage a solid rally against the greenback.
AUD/USD Technical Levels
AUD/USD
Overview:
Last Price: 0.7249
Daily change: -5.0 pips
Daily change: -0.0689%
Daily Open: 0.7254
Trends:
Daily SMA20: 0.7136
Daily SMA50: 0.716
Daily SMA100: 0.7266
Daily SMA200: 0.7474
Levels:
Daily High: 0.7304
Daily Low: 0.7246
Weekly High: 0.726
Weekly Low: 0.705
Monthly High: 0.724
Monthly Low: 0.702
Daily Fibonacci 38.2%: 0.7268
Daily Fibonacci 61.8%: 0.7282
Daily Pivot Point S1: 0.7233
Daily Pivot Point S2: 0.7211
Daily Pivot Point S3: 0.7175
Daily Pivot Point R1: 0.729
Daily Pivot Point R2: 0.7326
Daily Pivot Point R3: 0.7348
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