The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Monday, dragging the price of AUDUSD to less then 0.7500, following the release of some key economic news. The technical bias remains bearish because of the lower low in the recent downside move.
As of this writing, the pair is being traded around 0.7475. A hurdle can be noted near 0.7517, the horizontal resistance area as demonstrated in the give below daily chart. A break and daily closing above the 0.7517 resistance area shall incite renewed buying interest validating an upside rally towards the 0.7710 resistance zone.
On the downside, a support can be noted around 0.7445, the horizontal support area ahead of 0.7300, the confluence of psychological number as well as a critical support zone. A daily closing below the 0.7300 support area shall target 0.7160, the swing low of the last major downside wave.
A closely watched indicator of Australian inflation rose for the fifth straight month in December, an early indication that easy central bank policy was having its desired effect. The TD Securities-Melbourne Institute consumer inflation gauge climbed 0.5% in December and was up 1.8% from a year ago. That was the biggest gain in six months. In November, the inflation index nudged up 0.1%, which translated into a year-over-year gain of 1.5%.
Considering the overall technical and fundamental outlook selling the pair around current levels appears to be a good strategy in short to medium term.