AUD/USD sees little action on China inflation numbers

• China Jan CPI and PPI figures miss estimate.
• AUD/USD keeps 30 pip range of 0.78-0.7770.

China inflation as represented by the consumer price index (CPI) rose 0.6 percent month-on-month in January, missing the estimate of 0.7 percent, but well above the previous month's print of 0.3 percent.

Meanwhile, producer price index (PPI), also known as factory-gate prices, came in at 4.3 percent, missing the estimate of 4.4 percent and well below the previous month's figure of 4.9 percent.

The decline in the PPI is likely overshadowing the pickup in the CPI, and hence capping the rise in the Aussie dollar. Meanwhile, the downside is likely being capped around the 100-day MA of 0.7771, courtesy of oversold conditions shown by the 4-hour RSI.  

Earlier today, Australia reported a bigger-than-expected drop in home loan uptake, while the RBA sounded a bit concerned about household income. Looking ahead, the Aussie dollar could remain under pressure, courtesy of the risk-off action in the global markets and the resulting demand for anti-risk currencies.  

AUD/USD Technical Levels

FXStreet Chief Analyst Valeria Bednarik writes, "Technical readings in the 4 hours chart favor a bearish continuation, as the 20 SMA maintains its sharp bearish slope above the current level, while technical indicators lack directional strength, the Momentum below its 100 level and the RSI within oversold readings."

Support levels:  0.7780 0.7745 0.7710                                 

Resistance levels: 0.7820 0.7850 0.7890