The AUD/USD pair failed to take on the overnight recovery mode beyond 0.7570 levels, now pushing the rates lower towards the mid-point of 0.75 handle.
The spot trades largely subdued so far this session, in absence of fresh fundamentals drivers amid holiday-thinned markets, as the Australian traders are away on a National holiday – ANZAC Day.
AUD/USD Technical Levels At 0.7559, the immediate support is located at 0.7547/43 (20 & 200-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7470/69 (intermittent support) and below that 0.7446 (Jan 13 low). On the flip side, the pair finds the immediate resistance at 0.7595/0.7600 (50-DMA/ round number) above which gains could be extended to the next hurdle located 0.7614/16 (Apr 17 & 4 low) and 0.7650 (psychological levels).
AUD/USD remains flat lined around 0.7470 following the Aussie PPI release.
The uptick in the annualised figures indicates CPI inflation may choose up tempo in advance, however, the AUD is in no mood to strengthen. Furthermore, the data released earlier this week showed a drop within the Australia headline cocumer price inflation in the first zone.
With treasury yields going nowhere, there may be little incentive for traders to boost the American greenback. However, things may change later if the US preliminary Q1 GDP betters estimates.
Technical Levels to watch: A break below 0.7455 (Apr 26 low) would open up downside towards 0.7430 (Jan 12 low) and 0.70 (zero figure). On the other hand, a break above 0.75 (5-DMA) would expose hurdle at 0.7522 (10-DMA) and 0.7530 (100-DMA).
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