AUD/USD Analysis: upside limited by US-China jitters

AUD/USD Current price: 0.7067

  • Australian Consumer Inflation Expectations surged in March.
  • AUD/USD comfortably numb between 0.7000 and 0.7100.

The AUD/USD pair fell to 0.7040, weighed at the beginning of the day by mixed Chinese data, as the country's Retail Sales were up by 8.2% YoY in January, better than the 8.1% expected, while Industrial Production in the same period, increased by 5.3%, below the 5.5% forecasted. Australian Consumer Inflation Expectations, according to the Melbourne Institute, were up to 4.1% in March vs. 3.7% in the preceding month. The latest recovery was the result of absent legit demand for the greenback beyond its safe-haven condition, limited by the poor performance of worldwide equities. News about trade talks between China and the US, only added uncertainty this Thursday. Australia doesn't have macroeconomic releases scheduled for Friday.

The pair is still at risk of losing additional ground before the week is over, as, in the 4 hours chart, it broke below its 20 SMA, now unable to surpass it, while the 100 and 200 SMA gain downward traction above the shorter one. The Momentum indicator in the mentioned chart maintains a modest downward slope within negative levels, while the RSI advances in neutral territory.

Support levels: 0.7040 0.7000 0.6965

Resistance levels: 0.7100 0.7135 0.7180

View Live Chart for the AUD/USD

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