AUD/USD analysis: gains trimmed, more range ahead

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7385

RBA to release the statement of its latest monetary policy meeting.
AUD/USD back to its comfort zone around the 0.7400 figure after another failed attempt to break higher.

The AUD/USD pair surged to an August high of 0.7452, but trimmed all of its gains and settled near a daily low of 0.7380. The early advance in the pair was backed by Chinese inflation data, as July inflation was up 0.3% MoM in July, while from a year earlier, inflation rose by 2.1%, both above previous readings and market's forecasts. The yearly Producer Price Index also beat expectations printing 4.6% vs. the 4.4% forecasted. The pair retreated from the mentioned high with no clear catalyst, while the decline was later exacerbated by broad dollar's strength, following Fed Evans' comments about the US economy and future rate moves. The Reserve Bank of Australia will release the statement of its latest monetary policy meeting early Friday, although with most of it already out, chances of the document affecting the market are limited. The pair turned bearish in the short term, now trading below all of its moving averages in the 4 hours chart, and with technical indicators heading south within negative territory. Nevertheless, the pair remains mid-way within its last two-month range, with chances of testing the bottom in the 0.7300 region on a break below 0.7370.

Support levels: 0.7370 0.7330 0.7300

Resistance levels: 0.7400 0.7445 0.7485

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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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