FxWirePro: AUD/USD rangebound at cloud resistance, focus on US CPI data for further impetus

AUD/USD chart - Trading View 

• AUD/USD hits session highs near 0.7081 before paring some gains to currently trade at 0.7070 at 0415 GMT.
   
• Aussie buoyed amid fresh US-China trade talks, where Chinese Vice Premier Liu He and the US Trade Representative Robert Lighthizer had further discussions on the trade issue.
   
• Upside remains limited after mixed data and as markets await crucial U.S. inflation data.
   
• Australia's monthly business conditions index fell by 3 points to +4 index points versus +5 forecast whereas business confidence index declined to +2 index points from +4 marked previous month.
   
• Elsewhere, January month investment lending for homes dropped less than -4.4% prior to -4.1% while home loans slipped past +1.0% forecast to -2.6% but still remained up from -6.1% prior.
   
• Focus now on RBA Deputy Governor Guy Debelle’s speech and the US CPI data which can offer fresh impulse to traders.
   
• U.S. CPI is likely to remain unchanged at 1.6% y/y, whereas core CPI, may repeat 0.2% and 2.2% figures on m/m and y/y basis respectively.
   
• Technical indicators on the daily charts are bullish. Daily cloud caps upside for now. Break above can see gains upto 20-DMA at 0.7103.
   
• Major trend in the pair is bearish. Minor rallies could be used to accumulate shorts. Bearish invalidation only above 110-EMA.

Support levels - 0.7046 (5-DMA), 0.70

Resistance levels - 0.7070 (cloud base), 0.7103 (20-DMA)

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