The Australian dollar failed to capitalize on upbeat Australian business confidence and a sharp drop in the Chinese CPI, pushing the AUD/USDpair back to 0.78 levels from the high of 0.7840 levels.
Weak commodities weigh over Aussie
The Australian dollar erased gains since commodity prices failed to rally on prospects of fresh monetary stimulus from the People’s Bank of China (PBOC) after the data released earlier today showed a sharp decline in the Chinese CPI to five year low. Despite the increased speculation of fresh monetary stimulus, commodity prices weakened. Comex Copper trades 0.40% lower at USD 2.57/pound, while WTI Crude prices weakened 1.67% to USD 51.98/barrel.
Furthermore, the 10-year Treasury yield in the US gained 3.8 basis points to 1.986%, which helped the USD recover losses.
AUD/USD Technical Levels
The immediate support is seen at hourly 100-SMA located at 0.7798, under which losses could be extended to 0.7786 (hourly 200-SMA). On the flip side, immediate resistance is seen at 0.7815 and 0.7840 levels.
Weak commodities weigh over Aussie
The Australian dollar erased gains since commodity prices failed to rally on prospects of fresh monetary stimulus from the People’s Bank of China (PBOC) after the data released earlier today showed a sharp decline in the Chinese CPI to five year low. Despite the increased speculation of fresh monetary stimulus, commodity prices weakened. Comex Copper trades 0.40% lower at USD 2.57/pound, while WTI Crude prices weakened 1.67% to USD 51.98/barrel.
Furthermore, the 10-year Treasury yield in the US gained 3.8 basis points to 1.986%, which helped the USD recover losses.
AUD/USD Technical Levels
The immediate support is seen at hourly 100-SMA located at 0.7798, under which losses could be extended to 0.7786 (hourly 200-SMA). On the flip side, immediate resistance is seen at 0.7815 and 0.7840 levels.
