AUD/USD struggling to regain the bids above 0.7820
|The AUD/USD pair has entered a phase of consolidation near 0.7820 levels, as the bulls gather pace further upside, following the latest rebound from near one-week lows of 0.7802
AUD/USD: Eyes on Aus CPI
The Aussie staged a solid comeback post-Tokyo open, after the renewed risk-on wave gripped the markets, as the Japanese traders cheered the news of Abe’s victory with ‘Supermajority’ in Sunday’s snap election.
Moreover, a retreat in the US dollar against its main competitors from two-week tops of 93.78, also collaborated to the renewed buying interest seen around AUD/USD. The greenback rallied hard last Friday, in sync with Treasury yields, on the news of 2018 budget bill passed, which will pave the way for Trump’s tax overhaul plans.
However, further upside appears to lack follow-through amid renewed signs of a property slowdown in China, after the all new home prices arrived at 0.2% m/m and 6.3% y/y. Further, increased nervousness heading into the Australian Q3 CPI release due later this Wednesday, also keep the bulls on a cautious footing.
Focus now shifts towards the US economic releases due tomorrow amid a data-empty US calendar today, while risk-on/off sentiment will also remain the key driver for the major.
AUD/USD Levels to consider
Jim Langlands at FX Charts noted: “After an early move up to 0.7881 on Friday, the Aud remained heavy into the rest of the session and closed just above the day’s lows of 0.7808, placed under pressure as the US$ & Treasury yields rallied broadly. Having been looking positive, the dailies now seem to be running out of steam on the topside, and with the short term momentum indicators also looking heavy at test of 0.7800 and lower seems imminent. Below 0.7800, the next targets would be 0.7770 and the 0.7732. On the topside, resistance will be seen right here, at 0.7820, above which could squeeze towards 0.7850 and even back to 0.7880 although this looks rather doubtful.”
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