AUDUSD Chart Technical Outlook is likely to remain vulnerable with 0.6640 on the bears’ focus
The Aussie Dollar completed a 5-wave (Elliott Wave) bullish cycle and is correcting lower. Immediate support is at 0.6640. An AB=CD correction would target the 0.5% Fibonacci retracement, at o.6587. Resistances are at 0.6690 and 0.6750.
China´s trade balance data has posted better-than-expected readings, although imports remain weak, suggesting that domestic consumption has not fully recovered. This, coupled with the soft inflation levels seen on Monday has dampened risk appetite, weighing on the China-proxy AUD.
In Australia, consumer confidence and business conditions have both deteriorated, adding pressure on the AUD.
With the market wary of risk awaiting the US CPI release, due on Wednesday, I expect the pair to remain on the defensive, with upside attempts limited.
