- Aussie Dollar is looking to break against the US Dollar after the Chinese CPI report which was released earlier today.
- There is a flag pattern formed on the hourly chart of the AUDUSD pair, which could act as a breakout pattern.
- Earlier, the Consumer Price Index released by the National Bureau of Statistics of China registered a decline of 0.4%, more than the market’s expectation.
- In terms of the yearly change, there was a rise of 2.3% in March 2016.
The Aussie Dollar after setting a low of 0.7495 against the US Dollar traded higher, and currently there is a flag pattern formed on the hourly chart of the AUDUSD pair. The pair is struggling to break the 50% Fib retracement level of the last drop from the 0.7639 high to 0.7495 low, which is not a good sign for the bulls.
The pair is currently around the 100 hourly simple moving average. So, if there is a break above it, AUDUSD might trade higher and break the flag resistance area.
On the downside, the flag support area may play a major role for the Aussie Dollar bulls moving ahead.
The Chinese Consumer Price Index report was reported recently by the National Bureau of Statistics of China. According to the report, retail price variations within a representative basket of goods and services declined by 0.4% in March 2016, compared with Feb 2016 which was higher than the forecast of -0.3%.
Moreover, the Chinese Producer Price Index posted a satisfactory reading and above the forecast. It came in at -4.3% for March 2016, less than the expectation of -4.6%.
The Aussie Dollar buyers were not impressed by the result. However, as long as the AUDUSD pair is above 0.7530, there is a chance of a move higher.