FxWirePro: AUD/USD rangebound after mixed China data, risk-related headlines to drive price action

AUD/USD chart - Trading View 

AUD/USD was trading rangebound on the day at 0.7830 at 04:45 GMT, with session high at 0.7845 and low at 0.7821.

The pair is consolidating previous session's losses and is holding above daily cloud and 5-DMA support.

Mixed China data failed to provide a clear direction. China CPI lagged behind upbeat expectations but PPI jumped to the highest since October 2017.

China’s Consumer Price Index (CPI) came in at -0.3% MoM, missing forecasts at -0.2%, but well above -0.5% prior. Whereas the yearly CPI eased to +0.9% versus +1.0% expected and above +0.4% in previous readouts.

However, China Producer Price Index (PPI) rose past 4.4% prior and 6.6% market expectations to 6.8%, the highest reading since October 2017.

Technical indicators for the pair are bullishly aligned. Upside bias intact as long as pair holds above daily cloud.

Risk-related headlines to drive price action. Focus also on Wednesday’s US CPI data (expected 3.6%, prior 2.6% YoY) for impetus.