AUD/USD keeps losses as China's PPI growth slows to 3.3%

  • The Aussie dollar is on the defensive, having charted a bearish RSI divergence earlier today.
  • China producer price inflation (PPI) or factory-gate price growth slowed more than expected in October.

The AUD/USD is currently trading at 0.7250, representing a 0.10 percent drop on the day, and may drop further on bearish technical setup and dismal China inflation data.

The currency pair charted a bearish divergence of the 4-hour chart relative strength index (RSI) earlier today as it dropped close to 50 pips from the high of 0.73. As a result, the pair could remain on the defensive in the next few hours.

More importantly, the bearish technical setup has likely been bolstered by a weaker-than-expected China PPI release. The October factory-gate inflation gauge came-in at 3.3 percent, missing the estimated print of 3.4 percent and down from the previous month's reading of 3.6 percent.

It is worth noting that a pick-up in China PPI back in mid-2016 had triggered the great reflation trade, helping the commodity dollars like the AUD stage a solid rally against the greenback.

AUD/USD Technical Levels


    Last Price: 0.7249
    Daily change: -5.0 pips
    Daily change: -0.0689%
    Daily Open: 0.7254
    Daily SMA20: 0.7136
    Daily SMA50: 0.716
    Daily SMA100: 0.7266
    Daily SMA200: 0.7474
    Daily High: 0.7304
    Daily Low: 0.7246
    Weekly High: 0.726
    Weekly Low: 0.705
    Monthly High: 0.724
    Monthly Low: 0.702
    Daily Fibonacci 38.2%: 0.7268
    Daily Fibonacci 61.8%: 0.7282
    Daily Pivot Point S1: 0.7233
    Daily Pivot Point S2: 0.7211
    Daily Pivot Point S3: 0.7175
    Daily Pivot Point R1: 0.729
    Daily Pivot Point R2: 0.7326
    Daily Pivot Point R3: 0.7348


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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD pulls away from two-week highs, steadies near mid-1.10s

EUR/USD lost its momentum before testing 1.11 as surging US Treasury bond yields and upbeat macroeconomic data from the US helped USD gather strength.


GBP/USD fails to hold above 1.29 on broad USD recovery

GBP/USD erased more than 70 pips in American trading hours and turned red below 1.2900 pressured by the broad-based USD strength that saw the US Dollar Index rebound to 98.


USD/JPY edges higher toward 108.70 as 10-year T-bond yield extends rally

The USD/JPY pair rose modestly in the last hour boosted by the improving market sentiment and was last seen trading at 108.65, adding 0.05% on a daily basis.


Gold: Remains vulnerable below 100-day SMA

Gold seems to have stalled its recent corrective bounce from three-month lows and witnessed a modest pullback from previous support, now turned resistance near 100-day SMA.

Gold News

Slow-motion Bitcoin battering continues amid interesting Tron chart, Pomp's PayPal comment

Bitcoin plunges below $8,00, dragging cryptos down. Thursday's trading is marked by a sea of red, without a single downward driver, but with an accumulation of downbeat developments. 

Read more