FxWirePro: AUD/USD slips below daily cloud to hit 3-week lows, Powell's testimony in focus

AUD/USD chart - Trading View 

AUD/USD extends weakness as poor Chinese data and continued U.S. dollar strength add to bearish pressures around the pair.

The major slipped below daily cloud and hit new 3-week lows at 0.6918, bias still bearish.

China's PPI for June came in at 0.0% y/y, widely missing expectations for a 0.3% rise and down significantly from the 0.6% rise in the previous month. 

While, consumer price inflation rose 2.7% y/y, in-line with expectations. June CPI fell -0.1% m/m vs -0.1% expected and 0.0% prior.

All eyes now on Powell's testimony and the FOMC minutes that follow later in the day for further impetus.

The major has breached strong support seen at 0.6950 (converged 50 and 20 day MAs). Next bear target lies at 0.6843 (Lower BB). 

Support levels - 0.69, 0.6865 (May 17th, 23rd low), 0.6843 (lower Bollinger band)

Resistance levels - 0.6949 (20-DMA), 0.6976 (55-EMA), 0.7025 (110-EMA) 

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-extends-losses-after-mixed-NAB-data-break-below-06950-to-accentuate-weakness-1557854) is progressing well.

Recommendation: Stay short, hold for targets. 

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.