FxWirePro: AUD/USD slips below 21-EMA, looming US-China trade risks cap upside

AUD/USD chart - Trading View 

AUD/USD is trading 0.18% lower on the day at 0.6948 at 04:25  GMT.

The pair has slipped below 21-EMA support raising scope for further downside.

Aussie under pressure amid looming US-China trade risks and in-line Chinese CPI and PPI data.

Major trend in the pair has been bearish and upside correction was capped at 55-EMA.

Technical indicators on the daily charts have turned bearish with RSI and Stochs rolling over from overbought levels.

5-DMA has turned and volatility is rising on the intraday charts. Dip till 0.6865 likely.

5-DMA is capping upside at 0.6968. Break above 55-EMA will negate near-term bearishness.

Focus now on U.S. CPI data for further impetus. Weak data could dent US dollar and limit downside in the pair.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.