The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Monday, decreasing the price of AUDUSD to less than 0.7900 following some key economic releases. The technical bias shall remain bullish because of a higher high in the ongoing upside move.
AUD/USD Technical Analysis
As of this writing, the pair is being traded around 0.7895. A support can be noted around 0.7879, an immediate horizontal support ahead of 0.7400, the psychological number and then 0.7389, another trendline support as demonstrated in the given below chart.
On the upside, a hurdle can be noted near 0.7985, an immediate horizontal resistance level ahead of 0.8000, the psychological level and then 0.8049, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bullish as long as the 0.7389 support area is intact.
Prices in the US rose by less than expected last month, as inflation in the economy remained tame. The Labor Department’s Consumer Price Index (CPI) inched up 0.1% last month, only a slight improvement on a stagnant June figure.
Economists polled by Reuters had expected a 0.2% month-on-month increase. The dollar fell on the inflation data, as markets felt it made the prospects of further rate rises less likely. The annual rate of inflation rose to 1.7%, up from 1.6% in June. Rising medical care costs, housing, and food pulled the CPI up in July, after no change in June and May’s 0.1% dip.
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.