AUD/USD sticks to modest gains near weekly tops, just above 0.6800 handle


  • Dovish RBA exerted some pressure, upbeat Chinese CPI helped limit losses.
  • A subdued USD demand provided an additional boost and remained supportive.

The AUD/USD pair quickly reversed an early Asian session dip, with bulls making a fresh attempt to build on the recent recovery move further beyond the 0.6800 round figure mark.

Upbeat Chinese CPI, weaker USD helped offset dovish RBA

The pair extended overnight modest pullback from weekly tops and dipped further on Friday in reaction to dovish comments by RBA Governor Lowe, reiterating the central bank is prepared to adopt unconventional policy measures if required.
 
This was followed by the release of RBA's quarterly monetary policy statement, wherein the Australian central bank lowered its inflation and economic growth forecasts and showed readiness towards further easing of the monetary policy.
 
The downtick, however, turned out to be short-lived, rather was quickly bought into following the release of upbeat Chinese consumer inflation figures, showing that the headline CPI rose 2.8% on yearly basis in July as against 2.7% expected.
 
On the other hand, Producer Price Index (PPI) came in weaker than expected and did little to provide any meaningful impetus to the China-proxy Australian Dollar, albeit the negative reading was largely offset by a subdued US Dollar demand.
 
The USD bulls held on the defensive in the wake of some renewed weakness in the US Treasury bond yields and the US President Donald Trump's latest criticism on Thursday over the Federal Reserves monetary policy stance.
 
Moving ahead, Friday's US economic docket - featuring the release of PPI figures, might further influence the USD price dynamics and produce some short-term meaningful trading opportunities later during the early North-American session.

Technical levels to watch

AUD/USD

Overview
Today last price 0.6808
Today Daily Change 0.0007
Today Daily Change % 0.10
Today daily open 0.6801
 
Trends
Daily SMA20 0.6918
Daily SMA50 0.6942
Daily SMA100 0.6989
Daily SMA200 0.7075
Levels
Previous Daily High 0.6822
Previous Daily Low 0.6746
Previous Weekly High 0.6917
Previous Weekly Low 0.6763
Previous Monthly High 0.7082
Previous Monthly Low 0.6832
Daily Fibonacci 38.2% 0.6793
Daily Fibonacci 61.8% 0.6775
Daily Pivot Point S1 0.6757
Daily Pivot Point S2 0.6714
Daily Pivot Point S3 0.6681
Daily Pivot Point R1 0.6833
Daily Pivot Point R2 0.6866
Daily Pivot Point R3 0.6909

 

 

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