AUD/USD chart on Trading View used for analysis
- AUD/USD is trading 0.25% higher on the day at 0.7188 at the time of writing.
- The Aussie dollar initially edged lower as China's factory-gate inflation highlighted growing pressure on the world's second-largest economy.
- The producer price index (PPI) rose 0.9 percent y/y in Dec, compared with a 2.7 percent increase in Nov, missing estimates at 1.6 percent.
- The consumer price index (CPI) also ticked lower to 1.9 percent from 2.2 percent, missing the estimated print of 2.1 percent.
- However, scope for the PBOC to stimulate the economy with the cooling consumer inflation has put up a bid in the antipodeans.
- AUD/USD has edged higher from session lows at 0.7146 and break above cloud base could see further gains.
- Technical studies are biased higher and next major bull target lies at 200-DMA at 0.7337.
- 21-EMA is strong support at 0.7126. Break below to see weakness.
Support levels - 0.7151 (5-DMA), 0.7126 (21-EMA), 0.71
Resistance levels - 0.7259 (cloud base), 0.73, 0.7337 (200-DMA)
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.