AUD/USD Clinches Highs above 0.73 on Stabilizing China CPI

AUD/USD Clinches Highs above 0.73 on Stabilizing China CPI

10 May 2016, 05:23
Roberto Jacobs
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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).


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