AUD/USD Price Analysis: Chinese CPI anticipated, but may not be what the bulls are hoping for
|- AUD/USD is firming from 4-hour support ahead of Chinese inflation data.
- The bulls will be looking for a discount at this juncture.
- Further demand could be on the cards in the coming sessions with eyes on 0.72 the figure.
As per the New York analysis from Tuesday's session, AUD/USD Price Analysis: Bulls looking for a break to test 0.7180 H4 resistance, where the 21-EMA was cited as a key support area, the bulls will be looking to Chinese data for a lift at the top of the hour. However, there are expectations of the data to emain weak in January despite intense supply-side pressures.
''CPI will be dampened by another drop in pork prices, capping overall food price inflation, as well as a high base. Industrial commodities, steel and oil prices continued to push higher over the month, while PMI input prices rose to their highest since October, suggesting any moderation in PPI will be limited,'' analysts at TD Securities argued.
Nevertheless, AUD/USD is breaking to the upside with the price holding above H4 21-EMA. This is seen as an encouraging development for the bulls ahead of the data. Eyes will be on 0.7180s and then 0.73 the figure as a critical milestone in the pursuit of a higher daily high.
AUD/USD prior analysis
AUD/USD live market
The price has respected the 21 EMA and support structure as illustrated above and bulls will be seeking to engage at a discount at this juncture.
AUD/USD weekly chart
On the other hand, the bears will note the weekly chart's resistance and bulls will need to overcome this near 0.7180.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.