FxWirePro: AUD/USD fails to benefit from upbeat Chinese inflation data, weakness likely on close below 5-DMA at 0.8028

• Aussie fails to benefit from uptick in Chinese inflation. China reported a better-than-expected CPI and PPI numbers on Saturday.
   
• Chinese producer price index (PPI) rose 6.3% from 5.5% in July, beating estimates of 5.6%.
   
• Markets find temporary respite after North Korea inaction over the weekend, but Aussie remains muted.
   
• AUD/USD failed to close above major trendline resistance on Friday's trade.
   
• We see shooting star formation at highs which raises scope for further weakness.
   
• Decisive break below 5-DMA will see weakness till 1H 200-SMA at 0.7980. Violation there could see further downside.
   
• We see upside only on decisive close above major trendline resistance at 0.8070.

Support levels - 0.8028 (5-DMA), 0.7980 (1H 200-SMA), 0.7955 (weekly 200-SMA), 0.7947 (20-DMA)

Resistance levels - 0.8070 (trendline), 0.81, 0.8163 (May 2015 high), 0.8295 (Jan 2015 high), 0.8451 (38.2% Fib retrace of 1.1080 to 0.6827 fall)

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