AUD/USD Building on China CPI-Led Gains, Eyes 100-DMA

AUD/USD Building on China CPI-Led Gains, Eyes 100-DMA

10 May 2016, 06:13
Roberto Jacobs
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AUD/USD Building on China CPI-Led Gains, Eyes 100-DMA

The bid tone around the AUD keeps growing bigger as we head towards the late-Asian trades, now taking AUD/USD closer towards 100-DMA located at 0.7348.

AUD/USD extends higher from 0.7320

Currently, the AUD/USD pair rises 0.29% to fresh session highs of 0.7330, having found solid support at 0.7300 levels. The Aussie is seen building on gains fuelled by stabilizing Chinese CPI figures and above expectations PPI data. 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%.

A tad better Chinese macro data brought a sigh of relief to the markets, thus, boosting the risk appetite and adding to the upside in the higher-yielding currency AUD. Moreover, a minor pullback seen in the oil prices also collaborate to the positive sentiment around the AUD/USD.

Moving on, next in focus for the major remains the Fed official Bullard’s speech and the US JOLTS jobs opening data due later in the NY session.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7367/72 (daily R1/ 5-DMA) 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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