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AUD/USD popping onto the 0.90 handle

FXStreet (Guatemala) - AUD/USD moved onto the 0.90 handle with demand coming from Japanese demand in AUDJPY. Then we had the Chinese PPI and CPI data reinforcing the pair on the bid.

AUD/USD may not be effected too greatly on the Chinese data, as explained by Sean Callow, strategists at Westpac Banking Corporation ABN, “…shouldn’t have much impact. Inflation isn’t a very pressing concern in China right now, with growth having decelerated and the stronger yuan helping cap inflation”. Chinese CPI data came in slightly higher than expected. Technically for AUD/USD, Jim Langlands, Founder at FXCharts, said , “On the topside, there will be good sellers now at 0.9000, beyond which the jobs-data-inspired gap needs filling, up to 0.9015. Beyond there could have the shorts beginning to feel the pain which could inspire a run back towards 0.9070”. Other than that, a reminder from yesterday, the Australian employment fell 3.7k in January, which was well below expectations and the worst print in a decade that took the pair as low as 0.8227. Today, AUD/USD benefitted from a bout of poorer data that came today in the form of US retail sales contracted 0.4% inter-month during January, while excluding the Auto sector sales came in flat.

AUD/USD Levels

The 20 DMA is 0.8842, the 50 DMA is 0.8908 and the 200 DMA is 0.9233. RSI (14) reads 61.53. Supports are ascending from 0.8770, 0.8821, 0.8873, 0.8907. Spot is currently 0.9007, 0.9007, 0.9031, 0.9068 and 0.9087.

China's inflation picking up in January

China's January CPI (YoY) came at 2.5% vs 2.4% expected and a prior of 2.5%, with the monthly reading at 1% vs 0.7% expected and 0.3% previous. Meanwhile, China's January PPI stood at -1.6% vs -1.6% expected and -1.4% last. The data is a positive in input for the Australian Dollar short term.
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