AUD/USD keeps losses after China CPI data

The AUD/USD pair remains on the back foot around 0.7350 after data released in China showed CPI missed estimates, while PPI bettered expectations.  

Remains below trend line

Despite the recovery from the session low of 0.7340, the spot remains below the descending trend line coming from Nov 9 high and Dec 14 high. 

The China data showed CPI rose 2.1% y/y in Dec, compared to the estimate of 2.2%. Meanwhile, the PPI printed at 5.5% y/y, which is way higher than the expected print of 4.7%. 

AUD/USD Technical Levels

A break below 0.7311 (Nov 21 low) would open the door to 0.7279 (Dec 21 high), under which the losses could be extended to 0.72 (zero figure). On the higher side, breach of 0.7358 (trend line hurdle) would expose resistance at 0.74 (zero figure) and 0.7431 (Dec 12 low).