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10 Apr 2015
AUD/USD testing lows below 0.7685
FXStreet (Mumbai) - AUD/USD erased gains from Asia and trades muted below 0.77 handle in the European session, largely weighed down by upbeat Chinese CPI data which suggests that PBOC easing prospects may fade away.
AUD/USD back below 0.77
Currently, the AUD/USD trades flat at 0.7687, having previously posted day’s low at 0.7684 and day’s high at 0.7721. AUD/USD remains vulnerable as Chinese inflation figures which came in slightly stronger than expected trimmed hopes for further easing by PBOC in a bid to spur the Chinese economy. Australia is heavily dependent on China for its exports.
The CPI rose at an annual pace of 1.4% in March, National Bureau of Statistics (NBS) data revealed, unchanged from the rise seen a month earlier, and stronger than forecast of a 1.3% increase in the CPI.
However, persistent US dollar strength across the board following FOMC minutes and upbeat US jobless claims data continues to drag the AUD/USD pair lower.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7729 (April 8 High) levels, above which gains could be extended to 0.7762 (March 29 High) levels. On the flip side, support is seen at 0.7660 levels from here it to 0.7626 levels.
AUD/USD back below 0.77
Currently, the AUD/USD trades flat at 0.7687, having previously posted day’s low at 0.7684 and day’s high at 0.7721. AUD/USD remains vulnerable as Chinese inflation figures which came in slightly stronger than expected trimmed hopes for further easing by PBOC in a bid to spur the Chinese economy. Australia is heavily dependent on China for its exports.
The CPI rose at an annual pace of 1.4% in March, National Bureau of Statistics (NBS) data revealed, unchanged from the rise seen a month earlier, and stronger than forecast of a 1.3% increase in the CPI.
However, persistent US dollar strength across the board following FOMC minutes and upbeat US jobless claims data continues to drag the AUD/USD pair lower.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7729 (April 8 High) levels, above which gains could be extended to 0.7762 (March 29 High) levels. On the flip side, support is seen at 0.7660 levels from here it to 0.7626 levels.