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AUD/USD Price Analysis: Bulls keep 0.6960 on radar despite mixed China inflation

AUD/USD braces for key inflation numbers below 0.6300 amid sluggish markets
  • AUD/USD grinds higher even as China CPI improved but PPI eased for December.
  • Successful trading above 200-DMA, previous resistance line from June favor bulls.
  • Two-month-old ascending trend line lures buyers amid bullish MACD signals.

AUD/USD seesaws around the intraday high near 0.6925 even as China prints mixed inflation data for December during early Thursday. In doing so, the Aussie pair extends the previous day’s gains while staying firmer around the highest levels since late August 2022, marked earlier in the week.

That said, China’s headline Consumer Price Index (CPI) YoY grew 1.8% YoY versus 1.8% expected and 1.6% prior whereas the Producer Price Index (PPI) marked -0.7% figures compared to -1.3% previous readings and -0.1% market forecasts.

In addition to the mostly firmer data from Australia’s biggest customer China, the AUD/USD pair’s ability to defend the previous week’s upside break of the 200-DMA and a downward-sloping trend line from June, respectively around 0.6830 and 0.6815, also favor the bulls.

Additionally, keeping the AUD/USD pair on the buyer’s radar are the bullish MACD signals.

As a result, the Aussie pair is well-set to poke a two-month-old ascending resistance line, around 0.6960 at the latest. However, the late August 2022 top surrounding the 0.7000 psychological magnet could challenge the AUD/USD bulls afterward.

Alternatively, AUD/USD downside remains elusive beyond the 0.6815 level comprising the previous resistance line.

Following that, the monthly low of 0.6687 and June 2022 bottom close to 0.6680 could lure the AUD/USD bears before the previous monthly trough surrounding 0.6630.

AUD/USD: Daily chart

Trend: Further upside expected

 

Written by Judith Nistro