FxWirePro: AUD/USD Unable to Hold Above 0.75 Handle, Breaks Support at 0.7472, Good to Sell Rallies
- AUD/USD rejected at session highs by 0.7504, edges lower after poor Chinese CPI and PPI numbers dents Aussie bulls.
- China CPI data for May came in at +2.0% y/y versus +2.2% expected and against +2.3% previous, while the factory gate prices also missed estimates.
- Poor data reinforced concerns that China is yet to come out of the persistent economic slowdown.
- AUD/USD has broken below minor support at 0.7472 on the hourly charts, intraday bias lower.
- Supports on the downside are seen at 0.7430 (trendline), 0.7422 (5-DMA) and 0.74.
- On the upside resistance is seen at 0.7488 (50% Fib of 0.7835 to 0.7145 fall), 0.75 and then 0.7570 (61.8% Fib).
- Sentiment around oil and stock markets will continue to dominate the Aussie moves ahead of Friday’s US consumer sentiment data.
Recommendation: Good to sell rallies around 0.7470, SL: 0.7510, TP: 0.7430/ 0.74