AUD/USD Slides Further to 0.7410, 100-DMA Back On Sight
The AUD/USD pair is seen extending its Thursday's reversal from 0.7500 handle and is currently trading in the vicinity of 0.7400 handle amid broad risk-off trade.
On Thursday, the pair failed to sustain its move above 50-day SMA and reversed sharply to erase Wednesday's gains as disappointing Chinese inflation data resurfaced concerns over China led global economic slowdown.
Being Australia's largest trading partner, Chinese economic data has a lasting effect on the Aussie. A bunch of macroeconomic data, which includes Industrial Production, Fixed Asset Investment and Retail Sales, are slated for release from China over the weekend, which could further affect commodity-linked currencies, including the Australian Dollar.
From a technical perspective, failure to decisively conquer 50-day SMA and a subsequent break below 100-day SMA immediate support could turn the pair vulnerable to further corrective move in the near-term.
Technical levels to watch
From current levels, 100-day SMA near 0.7385 region seems to provide immediate support for the pair. Weakness below this immediate support could take the pair back towards retesting 0.7315-0.7300 support area.
Meanwhile on the upside, 50-day SMA near 0.7460 region remains immediate resistance to conquer. Momentum back above 50-day SMA resistance, leading to a follow-through strength above 0.7500 handle, now seems to pave way for continuation of the pair's near-term upward trajectory towards its next round figure mark resistance near 0.7600 level.
