- – The Aussie dollar was under heavy pressure with a break below 0.7540 against the US Dollar.
- – There is a crucial bearish trend line with resistance at 0.7580 on the 4-hours chart of AUD/USD.
- – The Chinese Consumer Price Index released by the National Bureau of Statistics of China posted a decline of 0.2% in Feb 2017, compared with the +0.6% forecast.
Chinese Consumer Price Index
Today in China, the Consumer Price Index for Feb 2017 was released by the National Bureau of Statistics of China. The market was expecting the Chinese Consumer Price Index to increase by 0.6% in Feb 2017, compared with the previous month.
The outcome was well below the forecast, as the Chinese Consumer Price Index registered a decline of 0.2% in Feb 2017, which was also lower than the last +1%. In terms of the yearly change, the CPI increased 0.8% in Feb 2017, compared with the same month a year ago. It was also disappointing, as the market was aligned for a 1.7% rise.
The result was discouraging, and weighed on the Aussie dollar, and AUD/USD extended its decline below the 0.7530 support area.
AUD/USD Technical Analysis
It is a clear downtrend in the Aussie dollar since there was a break below the 0.7600 handle against the US Dollar. The AUD/USD pair declined heavily and broke the 0.7580, 0.7550 and 0.7530 support levels, igniting a solid downside move.
The pair has already broken the last swing low at 0.7542. It also cleared the 1.236 extension of the last wave from the 0.7542 low to 0.7632 high. So, there are chances of more declines in the near term.
If there is a break below the 0.7500 handle, the pair could easily test the 1.618 extension of the last wave from the 0.7542 low to 0.7632 high. In that case, the 0.7480 support may come into play and try to prevent downsides. On the upside, the last swing low at 0.7540 is now a resistance zone. If there is a recovery in AUD/USD, then the 0.7540 and 0.7560 levels might act as a hurdle for buyers in the short term.Tags: AUD/USD Technical Analysis, Aussie dollar, Chinese Consumer Price Index, US Dollar