AUDUSD trades 0.10% higher at 0.6810 helped by better China Consumer Price Index (Year over Year) which came in at 2.8%, above expectations of 2.7% in July, the Producer Price Index (Year over Year) came in at -0.3% below expectations of -0.1% in July. The Reserve Bank of Australia kept interest rate unchanged earlier this week at 1.00% at a record low as widely expected by markets.
AUDUSD continues the rebound from the 10 year lows at 0.6676 above the 0.68 mark following a bullish hammer formation that suggests that the pair has found a strong support at the recent low of 0.6676. Bears are in control for the medium term but the pair is building short term positive momentum as today breached and the 200 hour moving average. On the downside first support now stands at 0.6777 today’s low, a level that if breached will enhance the slide toward the 0.67 round figure. On the upside immediate resistance stands at 0.6817 today’s and yesterdays high while more offers will emerge at 0.6938 the 50 day moving average. The pair is exiting from oversold levels as implied by the RSI in the daily chart which stands at 35.55, so a sharp rebound above mid 0.68 can’t be ruled out.