FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (AUDUSD and USDCAD) for the day
FxWirePro: AUD/USD struggles to extend previous session's gains, firmer Aussie NAB data fails to impress
Chart - Courtesy Trading View
AUD/USD was trading 0.10% lower on the day at 0.6974 at around 05:45 GMT.
The pair struggles to extend previous session's gains, hovers around 55-EMA support.
Australian dollar unimpressed by firmer Aussie NAB data, the pair remains rangebound ahead of key US inflation data.
National Australia Bank’s Business Conditions data for July rose to 20, versus 15 market consensus and 13 prior. Business Confidence index matched 7 forecasts while rising past 1 prior.
On the contrary, Westpac Consumer Confidence Index for August eased to 81.2, below 83.8 prior.
Rising odds of aggressive Fed rate hike in September weigh on the market sentiment and exert additional downside pressure on the pair.
Focus now on the key US inflation data, due Wednesday, for impetus. Market participants have trimmed down US inflation forecasts.
Analysts expect the annual US CPI to slip lower to 8.7% compared with the prior release of 9.1%.
Investors remain wary and will make a reassessment of the situation after the release of inflation figures.
Technical indicators for the pair remain inconclusive. Price action extends choppy trade around 55-EMA.
Cloud breakout will propel the pair higher. Rejection at 55-EMA will negate any further upside in the pair.
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