AUD/USD struggles near daily lows, below mid-0.7200s ahead of US data

   •  The post-FOMC USD upsurge/softer Chinese data kept exerting downward pressure.
   •  The prevalent risk-off mood further driving flows away from perceived riskier currencies. 
   •  US PPI print/UoM consumer sentiment index eyed for some short-term trading impetus.

The AUD/USD pair now seems to have entered a bearish consolidation phase and is currently placed at the lower end of its daily trading range, just below mid-0.7200s.

The pair extended overnight rejection slide from the 0.7300 handle, with a combination of factors exerting some additional downward pressure for the second consecutive session on Friday.

The post-FOMC US Dollar upsurge back closer to monthly tops, combined with softer Chinese PPI print exerted some follow-through long-unwinding pressure on the China-proxy Australian Dollar.

Adding to this, the prevalent risk-off mood was further seen benefitting the greenback relative safe-haven status against its Australian counterpart and further collaborated to the pair's offered tone.

The bearish pressure now seems to have receded, at least for the time being, as market participants now look forward to the US economic docket for some fresh impetus.

The latest US PPI figures, coupled with the release of Prelim UoM Consumer Sentiment index for November might influence the USD price dynamics and produce some trading opportunities on the last trading day of the week. 

Technical levels to watch

Any subsequent slide is likely to find support near the 0.7225 region ahead of the 0.7200 handle, below which the pair is likely to accelerate the fall further towards the 0.7160-50 support zone. On the flip side, the 0.7270-75 region now seems to have emerged as an immediate resistance, which if cleared might assist the pair to make a fresh attempt towards conquering the 0.7300 handle.

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