• AUD/USD remains pressured for the second consecutive day, recently pushed by China inflation data.
  • China CPI, PPI rose less than market forecasts in July.
  • Risk appetite remains dicey ahead of the US inflation data, US dollar traces sluggish yields.
  • Firmer US CPI could joins hawkish Fedspeak to underpin USD run-up.

AUD/USD holds lower ground near 0.6960 during Wednesday’s Asian session, justifying the downbeat inflation data from China. In addition to China CPI and PPI data, cautious mood ahead of the US inflation numbers and fears of economic recession also weigh on the Aussie pair.

China’s headline Consumer Price Index (CPI) eases to 2.7% YoY in July versus 2.9% expected and 2.5% prior. Further, the Producer Price Index (PPI) dropped to 4.2% compared to 8.0% market forecasts and 6.1% previous readings.

Wall Street’s downbeat performance, as well as a rebound in the US 10-year Treasury yields to 2.79%, portrays the sour sentiment. Further, S&P 500 Futures also print mild losses at around 4,120 by the press time and teases the AUD/USD bears, due to the pair’s risk barometer status.

It’s worth noting that chatters surrounding an economic slowdown recently weighed on the risk profile, especially after Russia halted oil supplies. “Russia reportedly suspended oil flows via the southern leg of the Druzhba pipeline, amid transit payment issues,” said Reuters.

Elsewhere, Fed's St. Louis president James Bullard said on Tuesday that he wants rates at 4% by the end of the year. This joins nearly recently firmer interest rate futures suggesting nearly 70% odds favoring the 75 basis points (bps) of a Fed rate hike in September.

Moving on, AUD/USD traders may witness a sluggish session ahead of the US CPI, expected to ease to 8.7% from 9.1% on YoY. However, risk catalysts may entertain the pair traders. Also important to watch will be the CPI ex Food & Energy which is likely to rise from 5.9% to 6.1%.

Technical analysis

Impending bear cross of the MACD and steady RSI to direct AUD/USD sellers towards the 50-DMA retest, around 0.6850 at the latest.

Additional important levels

Today last price 0.6958
Today Daily Change -0.0007
Today Daily Change % -0.10%
Today daily open 0.6965
Daily SMA20 0.6916
Daily SMA50 0.6946
Daily SMA100 0.7096
Daily SMA200 0.7156
Previous Daily High 0.6995
Previous Daily Low 0.6952
Previous Weekly High 0.7048
Previous Weekly Low 0.6869
Previous Monthly High 0.7033
Previous Monthly Low 0.668
Daily Fibonacci 38.2% 0.6968
Daily Fibonacci 61.8% 0.6979
Daily Pivot Point S1 0.6946
Daily Pivot Point S2 0.6928
Daily Pivot Point S3 0.6903
Daily Pivot Point R1 0.6989
Daily Pivot Point R2 0.7014
Daily Pivot Point R3 0.7032



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

AUD/USD struggling around 0.6400 and at risk of piercing the year’s low

AUD/USD struggling around 0.6400 and at risk of piercing the year’s low

Disappointing Australian data and a deteriorated market mood weighed on AUD/USD, quickly approaching the 2022 low at 0.6362. RBA’s Financial Stability report coming up next.


EUR/USD extends decline sub-0.9800 as risk aversion intensifies

EUR/USD extends decline sub-0.9800 as risk aversion intensifies

The American dollar maintains a strong upward momentum amid renewed inflation and recession concerns. EUR/USD further retreated after failing to regain parity mid-week.


Gold struggling to retain its bullish strength

Gold struggling to retain its bullish strength

XAUUSD shed some ground on Thursday, currently hovering around $1,713.00. The dollar has gathered momentum as Wall Street opened in the red, holding into negative territory at the time. Also, government bond yields resumed their advances and hold near fresh weekly highs.

Gold News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: The next move could surprise us all

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: The next move could surprise us all

The crypto market displays mixed signals but hints that the bearish trend is not over yet. Adopting a get-in-get-out mentality may be the more favorable approach for investors looking to expose themselves to the market.

Read more

US September NFP Preview: Analyzing gold's reaction to NFP surprises Premium

US September NFP Preview: Analyzing gold's reaction to NFP surprises

Historically, how impactful has the US jobs report been on gold’s valuation? In this article, we present results from a study in which we analyzed the XAUUSD pair's reaction to the previous 26 NFP prints.

Read more