AUD/USD – Offered near key Fibo, drops to 5-DMA

AUD/USD ran out of steam earlier today as priced neared 0.7672 (76.4% of 0.7835-0.7145) following which the pair dropped to 5-DMA level of 0.7621.

China CPI data ignored

China’s consumer price inflation accelerated at its weakest pace in six months as food prices rose at a slower pace. However, the weak inflation data and the resulting rise in speculation that PBOC would do more to support economy failed to lift the Aussie.

The currency pair continues to trade just above 0.7621 levels. The retreat from the high of 0.7664 further underscored 0.7672 as a strong resistance. The Fib level has acted as a strong hurdle at least four times in two months.

AUD/USD Technical Levels

A break below 0.7621 (5-DMA) would open doors for a drop to 0.7597 (23.6% of 0.6827-0.7835). On the higher side, 0.7672 (76.4% of 0.7835-0.7145) is a strong hurdle, which if breached would expose 0.7719 (May 3 high).