AUD/USD: can't get back above water, 0.7880 now resistance

Currently, AUD/USD is trading at 0.7872, down -0.51% on the day, having posted a daily high at 0.7917 and low at 0.7855.

AUD/USD dropped below the 0.7880 level in Asia on two occasions and has struggled to get back above water since with attempts failing on the 0.79 handle and more recently, failing at 0.7880 resistance. 

A number of factors have weighed on the Aussie, from a stronger dollar and recent poorly received data from China and Australia. China's July inflation missed expectations
when consumer prices eased to 1.4% year-over-year from 1.5%. On the month, CPI rose 0.1% beating prior of -0.2% but missing 0.2% consensuses. Domestic data was also disappointing on both home loans and consumer confidence that were way off the mark. The tensions around N.Korea is also a major concern. 

US stocks retreat on rising geopolitical tensions

For the sessions ahead, the RBNZ and US CPI at the end of the week are the next major catalysts. "FOMC members may find comfort in this week's CPI report," analysts at Brown Brothers Harriman suggested, adding, "July core prices likely rose 0.2%, which would be the fastest monthly pace since February.  A 0.2% rise in the headline would bring it to 1.8% (from 1.6%). "

AUD/USD levels

AUD/USD remains downside corrective but dips lower should remain well supported by .7836 the April 2016 high, explained analysts at Commerzbank. "While above the uptrend at 0.7748 we will assume it is capable of further gains longer term. Intraday rallies are indicated to terminate circa 0.7875/.7950 Above 0.8100 targets the 0.8162/66 May 2015 peak and 50% retracement and this is capable of holding the initial test. Above here lies the 0.8295 January 2015 high," the analysts at Commerzbank noted.