Chart - Courtesy Trading View
AUD/USD was trading 0.15% lower on the day at 0.7132 at around 05:00 GMT, bias is bearish.
The major initially spiked higher after Australia Q4 inflation data came in stronger than expected during early Tuesday.
Australia’s Q4 CPI rose more than 1.0% forecast and 0.8% QoQ to 1.3% while the YoY figures crossed the RBA's SOMP projections to 3.5%, versus 3.2% expected and 3.0% prior.
The RBA Trimmed Mean CPI crossed 0.7% market consensus with 1.0% figures on QoQ while also rising past 2.4% YoY forecast to 2.6%.
Further, National Australia Bank’s (NAB) Business Confidence figures for December dropped to -12 versus 16 forecast whereas the Business Conditions eased to 8 from 12.
Recovery attempts in the major was capped at 5-DMA and the pair is extending weakness for the 3rd straight session.
Price action is below cloud, Chikou span is biased lower. MACD and ADX support further weakness in the pair.
Major Support Levels:
S1: 0.71
S2: 0.7051 (38.2% Fib)
Major Resistance Levels:
R1: 0.7165 (200-week MA)
R2: 0.7177 (5-DMA)
Summary: AUD/USD trades with a bearish bias. The pair is set to extend weakness below daily cloud and close below 200-week MA for the week will accentuate downside. Next major bear target lies at 38.2% Fib at 0.7051.
