AUD/USD: Choppy within range below 0.7750, eyes on US inflation

AUD/USD remains defiant to broad US dollar strength, Treasury yields rebound.
US-China optimism and upbeat mood underpin the risk-sensitive aussie.
All eyes on the US inflation data for the next direction.

Dhwani Mehta FXStreet

AUD/USD is holding the higher ground but remains below the 0.7750 barrier, as markets await the US inflation data release for a fresh trading impetus.

Despite the bounce, the aussie keeps its prison range intact on the 0.7700 level, on track for the second straight weekly gain.

US inflation to hint at Fed’s next move

The bulls stand resilient to a broad-based US dollar strength, underpinned by repositioning ahead of the critical US economic release. The inflation data is eagerly awaited, as investors would gauge the Fed’s next policy move based on the outcome.

Odds for the Fed’s tapering have increased lately after upbeat comments from some of the US policymakers and expectations of strengthening economic recovery. A hotter than expected US CPI print is likely to boost the hopes for withdrawal of the monetary stimulus, in turn, positively impacting the yields alongside the dollar.

On the other hand, the aussie cheers the renewed US-Sino optimism after Global Times reported early Thursday that China and the US Commerce heads have agreed to manage their differences properly and agree to push forward with trade and investment ties.

The aussie optimists also ignored China’s passage of the law to counter foreign sanctions, as the US-Sino trade optimism outweigh. China’s Commerce Ministry lauded the US’ dropping of the WeChat, TikTok ban, as saying the move is “a step in the right direction.

Looking ahead, the pair awaits the US data for a convincing move in prices while following the dollar dynamics and risk trends.

AUD/USD additional levels to watch

AUD/USD

Overview
Today last price	0.7739
Today Daily Change	0.0009
Today Daily Change %	0.12
Today daily open	0.7731

Trends
Daily SMA20	0.7743
Daily SMA50	0.773
Daily SMA100	0.7728
Daily SMA200	0.7541

Levels
Previous Daily High	0.7763
Previous Daily Low	0.7724
Previous Weekly High	0.7774
Previous Weekly Low	0.7644
Previous Monthly High	0.7892
Previous Monthly Low	0.7674
Daily Fibonacci 38.2%	0.7739
Daily Fibonacci 61.8%	0.7748
Daily Pivot Point S1	0.7715
Daily Pivot Point S2	0.77
Daily Pivot Point S3	0.7676
Daily Pivot Point R1	0.7755
Daily Pivot Point R2	0.7779
Daily Pivot Point R3	0.7794

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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