AUD/USD Clinches Highs above 0.73 on Stabilizing China CPI
The in-line with expectations Chinese CPI data provided the much-needed respite to the AUD bulls, sending AUD/USD back on the bids beyond 0.73 handle.
AUD/USD supported at 0.7300
Currently,
the AUD/USD pair peeked into green and prints fresh session highs at
0.7322, having struck fresh ten-month lows at 0.7300 at Tokyo open. The
bulls are fighting hard to regain control after two consecutive sessions
of losses, with a slightly upbeat Chinese datasets offering fresh impetus to the Aussie.
China
CPI m/m came at -0.2% in April, in line with forecasts of -0.2%.
Meanwhile, China's PPI y/y registered at -3.4%, slightly above
expectations of -3.8%.
However, the ongoing recovery looks
fragile amid not so favourable risk conditions, with the Asian equities
showing subdued performance as the oil prices trade mixed. Markets now
await Fed official Bullard’s speech and the US JOLTS jobs opening data
for fresh cues on the US dollar, eventually impacting AUD/USD.
AUD/USD Levels to watch
The
pair finds the immediate resistance at 0.7367 (5-DMA/ daily R1) above
which gains could be extended to the next hurdle located at 0.7400
(round number). On the flip side, the immediate support located at
0.7264 (200-DMA). Selling pressure is likely to intensify below the
last, dragging the Aussie 0.7200 (round figure/ daily S3).
