FxWirePro: AUD/USD fails to build on previous session's gains, retraces below 5-DMA

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading 0.87% lower on the day at 0.6464 at around 10:50 GMT

Previous Week's High/ Low: 0.6747/ 0.6511

Previous Session's High/ Low: 0.6530/ 0.6363

Fundamental Overview:

Downbeat Australia monthly Consumer Price Index (CPI) data along with the risk-off mood weigh on the antipodean.

According to Australian Bureau of Statistics (ABS), the monthly CPI eased in August to 6.8% from 7.0% in July.

A pickup in the US Treasury bond yields, bolstered by faster Fed rate hikes bets, acts as a tailwind for the greenback, dragging the pair lower.

The risk-off impulse amid growing worries about a deeper global economic downturn also underpins the safe-haven buck.

Focus now on the release of the final Q2 GDP report and the usual Weekly Initial Jobless Claims data for impetus.

Technical Analysis:

- AUD/USD retraces below 5-DMA

- GMMA indicator shows major and minor trend are bearish

- MACD and ADX support downside

- Price action is below cloud and Chikou span is biased lower

Major Support and Resistance Levels:

Support - 0.6421 (Lower BB), Resistance - 0.6575 (200H MA)

Summary: AUD/USD trades with a major bearish bias. Scope for further downside.