AUD/USD analysis: rejected from 0.7700, but downside still limited

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7647

The Australian dollar rose to 0.7696 against the greenback this Tuesday, underpinned by better-than-expected Chinese data. China's January PPI jumped by 6.9% from a year earlier, the largest annual increase reported since August 2011, and well above the 6.3% increase expected, and previous 5.5%. Consumer prices also rose by more than expected, reaching 2.5% yearly basis after surging by 1.0% in the month, against previous 0.2%. The rally, however, stalled at a major psychological barrier, the 0.7700 level, reversing course as investors took some profits out of the table, and further falling with USD broad strength. The pair met some buying interest on a slide down to 0.7617, signaling that speculative interest is still willing to buy the dips towards 0.7600. Confined to its usual 0.76/0.77 range, the pair maintains its neutral stance in the 4 hours chart, as the price is a few pips below a horizontal 20 SMA, whilst the Momentum indicator heads modestly lower right below its 100 level, whilst the RSI indicator already turned higher around 48, limiting chances of further slides.

Support levels: 0.7605 0.7570 0.7530

Resistance levels: 0.7710 0.7745 0.7790

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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