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AUD/USD: Recovery from half-yearly lows falters near 0.7540

  • Weaker Chinese CPI and oil prices weigh.
  • Bulls continue to guard 0.7500 barrier.
  • US data eyed.

The Aussie bulls are seen looking vigor after the solid comeback from near half-yearly lows, leaving AUD/USD in a brief phase on consolidation near 0.7525 levels.

AUD/USD: Firmer DXY weighs

The stalled upmove seen in the spot can be mainly attributed to the persisting weakness seen in copper and oil prices, while cautious trading witnessed on the European equities also keeps the upside in check on the higher-yielding currency, the AUD.  Also, the AUD bulls remain somewhat weighed down by downbeat Chinese CPI data released last Sunday.

However, the major continues to derive support from the weaker tone seen around the US dollar across its main competitors, especially after US wage growth numbers disappointed, while repositioning ahead of the FOMC outcome could be also one of the catalysts behind the AUD/USD recovery from 0.7500 levels.

Later today, the US JOLTS job openings data will fill in an otherwise quiet US docket, as the focus shifts towards the Aus HPI and NAB business confidence data due out tomorrow morning.

AUD/USD Preferred Strategy

According to RoboForex Team, “The AUD/USD pair is trading at 0.7525; the instrument is still moving below Ichimoku Cloud, which means that it may continue falling. We should expect the price to test Tenkan-Sen and Kijun-Sen at 0.7530 and then continue moving downwards to reach 0.7430. However, the scenario that Implies further decline may be canceled if the price breaks the upside border of the cloud and fixes above 0.7580. In this case, the pair may continue growing towards 0.7660.”

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