AUD/USD analysis: eyeing Chinese data for clues

Valeria Bednarik FXStreet

AUD/USD Current price: 0.8053

The AUD/USD pair advanced up to 0.8124 early Friday, its highest since May 2015, but retreated on Friday, ending the week at 0.8053. The pair's decline came in the US afternoon, as base metals fell, with gold shedding some $10.00 ahead of the weekly close. There was no certain catalyst behind the decline, attributed to profit taking ahead of the weekend. Further weighing on Aussie's strength were cooper prices, finishing the weak at two-week lows. Over the weekend, China released its August inflation figures, with the producer price index up by 6.3%, well above previous and expected, fueled by strong gains in raw material prices, while consumer prices rose by 0.4% in the month, well above previous 0.1%. The positive news may lift the AUD at the weekly opening. Daily basis, the price remains well above its 20 SMA that anyway presents a modest upward slope, while technical indicators are biased higher near overbought levels, supporting additional gains ahead. In the 4 hours chart, however, technical indicators head lower within positive territory and coming from extreme overbought levels, supporting additional slides ahead, with an immediate support around 0.8030, where the pair has its 20 SMA and some intraday highs and lows from this past few days.

Support levels: 0.803 0.8000 0.7965

Resistance levels: 0.8065 0.8100 0.8140

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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