FxWirePro: AUD/USD trades weaker on broad-based U.S. dollar strength, upbeat China inflation data fails to impress

AUD/USD chart - Trading View 

AUD/USD was trading 0.89% lower on the day at 0.7697 at around 04:40 GMT, bias turning bearish.

The pair depressed on broad-based U.S. dollar strength and upbeat China inflation data and  Aussie Retail Sales fails to provide support.

Data released by the National Bureau of Statistics of China showed China's Producer Price Index fell 0.4% year-on-year in December, following November's 1.5% drop and beating the forecast of a 0.8% contraction. 

The Consumer Price Index rose 0.7% month-on-month in December, marking a bigger-than-expected rebound from November's 0.6% contraction. 

Further, Australia’s final reading of November’s Retail Sales rose past-7.00% forecast to 7.1%. Data has little impact on the pair.

Price action has slipped below 5-DMA and is on track for further downside as technical indicator are flashing bearish signals.

Oscillators are on verge of rollover from overbought levels and bearish divergence on RSI and Stochs on the daily charts adds to the bearish pressure.

The pair eyes next major support at 21-EMA at 0.7629. Break below 21-EMA will see major downside.