FxWirePro: AUD/USD struggles at 55-EMA, decisive break above required for upside continuation

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading rangebound at 0.6498 at around 04:50 GMT, with session high at 0.6518 and low at 0..6485.

Previous Week's High/ Low: 0.6492/ 0.6272

Previous Session's High/ Low: 0.6551/ 0.6444

Fundamental Overview:

Downbeat China data weighs on the antipodeans, dragging the pair lower.

China’s headline Consumer Price Index (CPI) dropped to 2.1% versus 2.4% market forecasts and 2.8% prior. 

However, the Producer Price Index (PPI) improved to -1.3% compared to -1.5% expected and 0.9% previous readings.

Elsewhere, China reports the highest levels of new COVID cases in six months, with the latest addition of 8,335 for November 08, denting risk sentiment.

Traders remains cautious ahead of the US Consumer Price Index (CPI) data, which will release on Thursday.

Data will determine whether the Fed will increase the peak for terminal rates or will leave them unchanged.

Preliminary estimates suggest the headline CPI is likely to slip lower to 8.0% vs. the prior release of 8.2%. While the core CPI that excludes oil and food prices is seen lower at 6.5% against 6.6% recorded earlier.

Technical Analysis:

- AUD/USD pivotal at 55-EMA resistance

- Price action is above 200H MA, 5-DMA is biased higher

- Momentum is bullish and volatility is high and rising

- GMMA indicator shows major trend is bearish, while minor trend is bullish

Major Support and Resistance Levels:

Support - 0.6419 (21-EMA), Resistance - 0.6528 (55-EMA)

Summary: AUD/USD struggles at 55-EMA resistance, decisive break above required for upside continuation. Retrace below 21-EMA will negate any upside bias.