AUD/USD analysis: back below 0.8000 on Wall Street's slump

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7972

The AUD/USD pair traded as high as 0.8065, its highest since May 2015 at the beginning of the day, but settled around 0.7970, down on soft Australian data and the sour tone of US equities. Data coming from Australia showed that during the second quarter of the year, the import price index fell 0.1% against the 0.7% advance expected and 1.2% previous, while the export price index also edged lower, down by 5.7%, slightly better than the 6.3% drop expected, but well below previous 9.4%. Australia will release its Q2 PPI figures during the upcoming Asian session, expected modestly up from Q1 readings, but chances are of a miss and therefore further pressure on the Aussie. From a technical point of view, the risk of a downward extension is limited at the time being, as the price managed to bounce from a now flat 20 SMA, whilst technical indicators turned horizontal within neutral territory, after correcting overbought conditions. Nevertheless, an acceleration though 0.7950, the immediate support, should support a bearish extension that can reach the 0.7870 support area.

Support levels: 0.7950 0.7905 0.7870

Resistance levels: 0.7985 0.8020 0.8050

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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