AUD/USD extends retreat towards 5-DMA on Aus NAB, China prices

The corrective slide in the AUD/USD pair from monthly tops found extra legs following the release of dismal Aus NAB confidence and mixed China prices data.

AUD/USD drops sharply from 0.7664

Currently, the AUD/USD pair trades -0.21% lower at fresh session lows 0.7635, having failed to sustain at four-week highs posted at 0.7673 a day before. The AUD/USD pair came under fresh selling pressure after the sentiment was hit by poor Australian business confidence gauge published by NAB, while upbeat China CPI figures were overshadowed by sharp decline in the country’s factory gate prices.

The Aus Business confidence came at 4 in July vs 6 in June, while business conditions saw a decline to 8 in July vs 12 in June. From the Chinese macro front, CPI rose 1.8% y/y in July, slightly stronger than the 1.7% growth expected. PPI dropped from 2.6% in June to 1.7% last month versus a 2.0% fall predicted.

Markets now digest the dataflow out from the Asia-pac economies, as focus now shifts towards the US calendar, with a host of second-liner data due on the cards.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7664 (Jul 5 & daily high) above which gains could be extended to the next hurdle located at 0.7700 (round figure). On the flip side, the immediate support located at 0.7608 (10-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7553 (20-DMA).