AUD/USD flat near 0.75, Chinese and Australian data eyed

After failing to hold above 0.75 handle on Tuesday, the AUD/USD went into a consolidation phase and had been confined to a 10 pip range in the last few hours waiting for the macro data from China and Australia. At the moment the pair is down 0.04% at 0.7495.

Despite the sudden drop witnessed in the US Dollar Index at the beginning of the NA session, the pair was unsuccessful at gaining bullish momentum as the risk aversion took the markets over, making it difficult for the AUD to find demand.

The next fresh impetus for the pair could come from the Chinese and Australian data at 01:30 GMT. March CPI in China is expected to retreat by 0.3% on a monthly basis while the PPI is expected to rise 7.6% on a yearly basis. However, the recent weakness in yuan could lead to higher than expected inflation figures and push the pair lower with China being the biggest trading partner of Austraila. At the same time, the Westpac Consumer Confidence will be released from Australia, and a higher than expected number could help the pair move above 0.75 once again.

Technical outlook

0.7475 (daily low/yesterday's low) could be seen as the immediate support followed by 0.7400 (psychological level) and 0.7300 (psychological level). On the flip side, resistances align at 0.7500 (psychological level) followed by 0.7550 (200-DMA) and 0.7600 (psychological level).

• AUD/USD rallies should struggle near 0.7550 – Commerzbank