Technicals

Add as a preferred source on Google

FxWirePro: AUD/USD pauses 3-day declines at 21-EMA support, mixed China's inflation data and broad USD strength keep upside limited

AUD/USD chart - Trading View AUD/USD was trading 0.20% lower on the day at 0.7379 at around 08:50 GMT, after closing 0.27% lower in the previous session. Mixed China's inflation data failed to provide any support to the …

2 min read
FxWirePro: AUD/USD pauses 3-day declines at 21-EMA support, mixed China's inflation data and broad USD strength keep upside limited
Image from the original EconoTimes article

Read the original article

AUD/USD chart - Trading View 

AUD/USD was trading 0.20% lower on the day at 0.7379 at around 08:50 GMT, after closing 0.27% lower in the previous session.

Mixed China's inflation data failed to provide any support to the pair. Worries about slowing growth due to the fast-spreading Delta coronavirus variant keep the antipodeans depressed.

China's factory gate inflation hit a 13-year high in August. The producer price index (PPI) rose 9.5% from a year earlier in August, the National Bureau of Statistics (NBS) said on Thursday, beating expectations at 9.0%.

Rising raw materials prices despite Beijing's attempts to cool them, putting more pressure on manufacturers in the world's second-largest economy.

A separate NBS statement showed that the consumer price index (CPI) in August rose 0.8% from a year earlier, less than expectations at 1.0% and below the government target of around 3% this year.

The core consumer price index, which strips out volatile food and energy prices, stood at 1.2% on year, versus a 1.3% rise in July.

Analysts expect the People's Bank of China (PBOC) to deliver a further cut to the amount of cash banks must hold as reserves later this year to lift growth.

AUD/USD downside has paused at 21-EMA at 0.7345. Break below will see more weakness. 

Stiff resistance seen at daily cloud and 110-EMA. Momentum is with the bulls. Break above 110-EMA will propel the pair higher.
 

Related articles

View all
Technicals

Major Pair Currency Score: AUDUSD Bearish

EURUSD - Levels to watch - 1.100 GBPUSD Levels to watch - 1.3180 USDCHF Levels to watch - 0.8400 USDCAD - Levels to watch - 1.4300 AUDUSD - Levels to watch - 0.7000 NZDUSD - Levels to watch - 0.5560