AUD/USD Forecast: Bearish And Near A Relevant Low, Heading Toward 0.6600

AUD/USD Current Price: 0.6677

• Chinese better-than-expected January inflation temporarily underpinned the pair.
• Australian NAB’s indexes seen improving modestly in January.
• AUD/USD bearish and near a relevant low, heading toward 0.6600.

The AUD/USD pair rose during Asian trading hours to 0.6706 but trimmed all of its intraday gains to settle around 0.6675 later in the day. The early advance was backed by better-than-expected Chinese inflation data as the January CPI was up by 1.4% MoM and by 5.4% YoY. However, the sour sentiment that kept equities in the red limited the upside potential for the pair. Renewed demand for the greenback sent it back lower during the last trading session of the day.

During the early Asian session, Australia will release December Home Loans, seen up by 0.7%. The country will also unveil the NAB’s Business Confidence Index, see at 0 in January from -2 previously, and the NAB’s Business Conditions Index for the same month, seen at 4 from 3 in December. China will publish January New Loans and M2 Money Supply.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair is hovering near its recent multi-year low at 0.6661, bearish in the short-term. The 4-hour chart shows that the intraday advance stalled well below a bearish 20 SMA, while the larger ones retain their downward slopes above the larger ones. Technical indicators resumed their declines after correcting oversold conditions, now again near oversold territory. The pair would likely near the 0.6600 figure on a break below the mentioned multi-year low.

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