The AUD/USD pair traded to 0.8065, its highest level since May 2015 at the start of the day, but settled around 0.7970, down from mild Australian data and the bitter tone of US stocks. Data from Australia showed that during the second quarter of the year the import price index fell 0.1% against the 0.7% expected and 1.2% earlier, while the export price index also fell 5.7% Slightly better than the 6.3% expected fall, but well below the previous 9.4%. Australia will release its second-quarter PPI figures during the upcoming Asian session, which was expected modestly from the first quarter readings, hence further pressure on the Australian.
From a technical point of view, the risk of a downward spread is limited at the moment, as the price managed to rebound from a flat moment, while the technical indicators became horizontal within the neutral territory, after correcting the conditions of Overbought. However, an acceleration of 0.7950, immediate support, must support a bearish extension that can reach the support zone at 0.7870.
