AUD/USD: The Australian dollar eased after data showed China’s producer price inflation slowed for a seventh straight month in January to its weakest since September 2016. The selling pressure intensified after Reserve Bank of Australia Assistant Governor Christopher Kent welcomed the domestic currency’s decline given there was still slack in the labour market and inflation remained below target. The Aussie trades 0.3 percent down at 0.7087, having hit a high of 0.7135 on Wednesday; it’s highest since February 6. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7044 (Dec. 26 Low), a break below targets 0.7016 (Dec. 27 Low). On the upside, resistance is located at 0.7166 (January 24 High), a break above could take it near 0.7203 (January 28 High).
AUD/USD daily chart