• The Aussie drops nearly 25-pips as the retreat extends on mixed China’s inflation.   
  • RBA’s warning on excessive lending risks adds to the weight on AUD/USD.
  • US dollar holds the lower ground amid dovish Powell, ahead of US PPI data.

AUD/USD is trading under pressure below 0.7650, having turned south from daily highs of 0.7661 on mixed Chinese inflation figures and a cautious tone seen in the RBA’s Financial Stability Report (FSR).

The annualized Chinese Consumer Price Index (CPI) and Producers Price Index (PPI) outpaced expectations. However, the monthly CPI came in below forecasts at -0.5% in March, showing that the post-pandemic recovery in domestic consumption has still not picked up pace.  

At the time of writing, the aussie trades 0.12% lower at 0.7641, having hit fresh daily lows at 0.7637 in the last minutes.

The rebound in the US dollar alongside the Treasury yields seems to add to the weight on the aussie dollar. The US dollar index is attempting a bounce around 92.10 while the 10-year US rates recover to 1.63%.

The sell-off in the US yields sent the dollar under the bus after Fed Chair Jerome Powell reiterated the dovish outlook on the monetary policy while downplaying the inflation risks.

Meanwhile, the RBA warned of excessive lending risks amid a surge in house prices in its latest Financial Stability Review (FSR), unnerving the optimists.

However, the mild gains in the S&P 500 futures and the rally in oil prices are offering support to the Aussie bulls. Next of note for the major remains the US PPI data release, as the dynamics in the dollar and yields could likely remain the main market motor.

AUD/USD: Technical levels to consider

AUD/USD

Overview
Today last price 0.7640
Today Daily Change -0.0012
Today Daily Change % -0.16
Today daily open 0.7652
 
Trends
Daily SMA20 0.7667
Daily SMA50 0.7715
Daily SMA100 0.7651
Daily SMA200 0.7407
 
Levels
Previous Daily High 0.766
Previous Daily Low 0.7602
Previous Weekly High 0.7694
Previous Weekly Low 0.7531
Previous Monthly High 0.785
Previous Monthly Low 0.7562
Daily Fibonacci 38.2% 0.7638
Daily Fibonacci 61.8% 0.7624
Daily Pivot Point S1 0.7616
Daily Pivot Point S2 0.758
Daily Pivot Point S3 0.7558
Daily Pivot Point R1 0.7675
Daily Pivot Point R2 0.7697
Daily Pivot Point R3 0.7733

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 

EUR/USD News

GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 

GBP/USD News

Gold stays below $1,830 as US yields edge higher

Gold stays below $1,830 as US yields edge higher

Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.

Gold News

Why Cardano could surprise over the weekend

Why Cardano could surprise over the weekend

ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures