FXStreet (Mumbai) – The Australian dollar remains in red, albeit erased half its slide versus the US dollar in the European session, with AUD/USD supported at 0.7647. The Aussie maintains an offered tone after its main trading partner China posted weak inflation data, with upbeat Oz business confidence failing to lift the Australian dollar.
AUD/USD retreats from 0.7647 lows
Currently, the AUD/USD pair trades -0.40% lower at 0.7673, recovering from session lows reached at 0.7647 earlier this session. The Aussie keeps red as traders ignored Aus improved business conditions reading as China softer price pressures print weighed heavily on markets.
Chinese inflation ticked down to 1.2% y/y in May, coming in slightly weaker than the forecast pace of 1.3%, and easing from April’s 1.5% rise.
While, the Aussie shrugged off upbeat business confidence data from Australia which revealed that the NAB Business Confidence Index jolted up to 7 in May from 3 in April, while the NAB Business Conditions Index rose to 7 from 4.
Looking ahead, Westpac’s consumer confidence figures are due tomorrow along with a speech from RBA Governor Glenn Stevens. Moreover, employment numbers will be published on Thursday, where the market anticipates the jobless rate to stay at 6.2%.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7717 (Today’s High) levels, above which gains could be extended to 0.7661 (May 28 High) levels. On the flip side, support is seen at 0.7647 (Today’s Low) levels from here it to 0.7615 (May 28 Low) levels.
(Market News Provided by FXstreet)