• AUD/USD closed sharply lower after rejection at major trendline resistance at 0.7732 in Thursday's trade. 
   
• Minor recovery attempts today capped after poor Chinese and Australian data.
   
• China CPI eased 1.3% y/y in Aug, weaker than 1.7% expected and 1.8% last. The monthly reading was at 0.1%. 
   
• PPI stood at -0.8% y/y, which was slightly higher than -0.9% expected and -1.7% prior. 
   
• Separately the Australian home loans m/m witnessed a sharp drop, coming at -4.2% vs -1.5% expected and 1.7% last.
   
• Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-breaks-major-trendline-resistance-at-07640-good-to-long-dips-274414) has almost hit all targets.
   
• Techs on 4-hourly charts have turned bearish. Scope for test of 20-DMA at 0.7614. Violation there could see test of 50-DMA at 0.7584.