AUD/USD: Aussie hit by PPI figures, but dollar still the weakest

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7956

The Aussie is the worst performer this Friday, down against the greenback after the release of worst-than-expected inflation data. According to the official release, Australia’s producer inflation index expanded by 0.5% in the second quarter of the year, matching Q1 but below market's expectations of a 0.6% gain. When compared to a year earlier, quarterly inflation rose by 1.7%. The AUD/USD pair fell down to 0.7936 daily basis, marginally higher ahead of US data release amid broad dollar's weakness. From a technical point of view, the 4 hours chart shows that the price is hovering around a flat 20 SMA, but that technical indicators have managed to bounce modestly from their mid-lines, limiting chances of a downward move. The key support continues being the 0.7870 region, where the pair bottomed this and the previous week. A better-than-expected US GDP reading can push the pair down to such level, although further slides seem unlikely, as the background scenario is not enough to support a steady dollar advance.

Support levels: 0.7935 0.7905 0.7870

Resistance levels: 0.7995 0.8030 0.8065

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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