FxWirePro: AUD/USD spikes over 1.25%, ignores downbeat China inflation data

Chart - Courtesy Trading View 

AUD/USD was trading 1.27% higher on the day at 0.6835 at around 07:00 GMT.

The pair has ignored downbeat China inflation data and edged higher as market’s optimism underpins.

Data released earlier today showed China’s Consumer Price Index (CPI) and Producer Price Index (PPI) both print unwelcome numbers for August. 

That said, the headline CPI slipped to 2.5% YoY versus 2.8% market forecasts and 2.7% prior while the PPI dropped to 2.3% compared to 3.1% expected and 4.2% prior.

Comments from US Treasury Secretary Janet Yellen, signaling likely positive change in the US-China trade ties, buoys market sentiment.

Technical bias for the pair has turned bullish. Price action has spiked past 5-DMA and is on track to test 21-EMA resistance. 

Major Support Levels: 

S1: 0.6800 (200H MA)

S2: 0.6778 (5-DMA)

Major Resistance Levels: 

R1: 0.6856 (21-EMA)

R2: 0.6915 (55-EMA)

Summary: AUD/USD is poised for further upside. Break above 21-EMA will fuel further gains.