- Souring data figures and Yen-positive Japan figures are driving back risk appetite in the Asia session.
- The Aussie is beginning to grind to a halt ahead of the RBA’s Lowe appearance.
The Aussie has fallen back slightly as traders mull over there options following Tuesday’s rally, dropping into 0.7750 as markets mull over risk appetite in the face of Japanese machine orders and declining Chinese inflation.
The AUD/USD kicked towards 0.7770 in early Wednesday trading, but the pair faltered following a contraction in the Westpac Consumer Confidence survey, and as traders moved into the Yen following Japanese Machine Orders that beat expectations. Aussie bulls were further derailed by Chinese inflation figures that showed a worse-than-expected slowdown in price growth.
China’s inflation softens more than expected in March
Next up on the Aussie docket will be a speech from the Reserve Bank of Australia’s (RBA) Philip Lowe. Lowe is expected to address markets directly in light of the dovish tone taken by the RBA at their latest rate decision.
AUD/USD Levels to watch
As FXStreet’s own Valeria Bednarik noted, “the 4 hours chart shows that the pair has recovered also above a bearish 200 EMA, the first time in over three weeks, also well above the 20 SMA that slowly gains upward traction. Technical indicators maintain their upward slopes near overbought readings, all of which points to a continued advance for this Wednesday.”
Support levels: 07740 0.7700 0.7765
Resistance levels: 0.7785 0.7820 0.7850