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AUD/USD slips back below recent highs as US PPI cools

Australian Dollar traded near 0.7050 after July US PPI was flat on the month, reducing expectations for further Fed tightening.

Reported · Written up by our desk · Major Pairs

AUD/USD was little changed on Thursday, holding near the 0.7050s after rising to a multi week high around 0.7091 on Wednesday, according to FXStreet.

The pair steadied as US data pointed to cooling price pressure, with the US Producer Price Index flat on the month in July and both the annual pace and core measures softening. FXStreet said the prints trimmed bets on additional Federal Reserve tightening and weighed broadly on the US dollar.

FXStreet also noted that slightly higher than expected weekly Initial Jobless Claims added to the softer tone for the dollar.

On the charts, AUD/USD was around 0.7055 on the 4 hour timeframe, with the 20 period SMA near 0.7059 acting as near term resistance and support clustered around 0.7053 and 0.7046, while a 100 period SMA near 0.7019 marked a deeper structural floor.

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