AUD/USD struggles near mid-0.6900s, over 1-week lows


  • Persistent US-China trade tensions continue to weigh on the Aussie.
  • Softer Chinese PPI figures prompt some fresh selling on Wednesday.
  • A subdued USD demand helps limit the downside ahead of the US CPI.

The AUD/USD pair remained depressed through the Asian session on Wednesday and dropped to near 1-1/2 week lows in the last hour.

The pair came under some renewed selling pressure on Wednesday and finally broke down of its overnight consolidative trading range in reaction to mixed Chinese inflation figures. In fact, Chinese consumer inflation, as measured by the headline CPI rose at an annualized pace of 2.7% in May as against 2.5% in April, while producer price index decelerated to 0.6% from 0.9% previous.

Meanwhile, the downside remained limited, at least for the time being, amid a mildly negative tone surrounding the US Dollar, which continues to be weighed down by firming market expectations that the Fed will be forced to cut interest rates sooner rather than later. Rate cut bets increased further after the US President Donald Trump's latest complain that the Fed was keeping interest rates way too high.

It, however, remains to be seen if the pair is able to attract any meaningful buying interest or the current pullback marks the resumption of the prior well-established bearish trend led by fears of a further escalation in trade tensions between the world's two largest economies, which has been one of the key factors denting sentiment surrounding the China-proxy Australian Dollar.

Moving ahead, Wednesday's economic docket - highlighting the release of the latest US consumer inflation figures, might influence the USD price dynamics and contribute towards producing some short-term trading opportunities later during the early North-American session.

Technical levels to watch

AUD/USD

Overview
Today last price 0.6949
Today Daily Change -0.0013
Today Daily Change % -0.19
Today daily open 0.6962
 
Trends
Daily SMA20 0.6931
Daily SMA50 0.7016
Daily SMA100 0.7068
Daily SMA200 0.7119
Levels
Previous Daily High 0.6967
Previous Daily Low 0.6946
Previous Weekly High 0.7022
Previous Weekly Low 0.6927
Previous Monthly High 0.7062
Previous Monthly Low 0.6862
Daily Fibonacci 38.2% 0.6954
Daily Fibonacci 61.8% 0.6959
Daily Pivot Point S1 0.695
Daily Pivot Point S2 0.6938
Daily Pivot Point S3 0.693
Daily Pivot Point R1 0.6971
Daily Pivot Point R2 0.6979
Daily Pivot Point R3 0.6991

 

 

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