AUD/USD stuck at 61.8% Fib, Aussie inflation gauge cools

AUD/USD is working hard to cut through 0.7967 [0.8065-0.7807] in Asia as the heightened tensions in the Korean Peninsula is sapping demand for the risky assets. 

North Korea successfully tested a nuclear bomb; its sixth and most powerful nuclear test. Thus, risk assets gapped lower, while safe haven assets at the open. AUD/USD opened lower at 0.7947 before rising to 0.7967. 

Monthly inflation gauge cools

TD Securities Inflation released by the University of Melbourne - Faculty of Economics and Commerce offered no support to the Aussie. The TD Securities Inflation printed at 2.6% y/y vs. previous month’s print of 2.5%. The month-on-month figure remained unchanged at 0.1%. 

AUD/USD Technical Outlook

FXStreet Chief Analyst Valeria Bednarik writes - 

“From a technical perspective, the pair remains unable to settle above the 61.8% retracement of its latest daily decline between 0.8065 and 0.7807, around the current level, as the daily chart shows multiple failed attempts since early August. In the same chart, technical indicators remain within positive territory, but with no clear directional strength, whilst the 20 SMA aims to turn higher around 0.7905, also the 38.2% retracement of the mentioned slide. In the 4 hours chart, the 20 SMA remains horizontal below the current level, while the RSI indicator is also flat at 57, while the Momentum indicator heads north within positive territory, leaning the scale towards the upside.