The AUD/USD pair is seen consolidating the sharp decline from multi-month highs, finding limited support from better than expected China CPI data.
AUD/USD faces stiff resistance near 0.7485 zone
Currently, the AUD/USD pair drops -0.11% to 0.7477, fighting hard to extend beyond 0.7485-90 levels. The Aussie continues to move back and forth in a 25-pips narrow range since Tokyo, consolidating the heavy gains booked yesterday. While the downside remained capped by surprisingly stronger Chinese inflation numbers, which offered some respite to the AUD bulls. The Chinese CPI rose 2.3% y/y in February, rising at the fastest pace since July 2014 and much higher than 1.8% increase expected.
However, the recovery from lows lacks follow-through as cautious sentiment prevails in the markets amid falling Chinese stocks and subdued oil prices. Looking ahead, markets will continue to absorb China data ahead of the US unemployment claims data, while sentiment on the global indices will also play a crucial role.
AUD/USD Levels to watch
The pair finds the immediate resistance at 0.7500 (psychological levels) above which gains could be extended to the next hurdle located at 0.7527/28 (daily R1/ Mar 9 High). On the flip side, the immediate support located at 0.7451/50 (5-DMA/ psychological levels). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7408 (daily S1).
(Market News Provided by FXstreet)