AUD/USD stuck in tight range around 0.7500, awaits China CPI

The AUD/USD pair is seen moving back and forth in a 20-pips narrow range so far this Tuesday, unable to hold onto gains, as the bulls remain on the back foot ahead of the Chinese inflation report due to be reported in the Asian morning tomorrow.

However, the Aussie remains supported amid strong Aus business confidence data and persistent broad USD weakness, while moderate risk-aversion amid tumbling treasury yields and negative European equities keep any upside attempt in check.

Looking ahead, the spot will get influenced by the Chinese CPI data due tomorrow, in absence of first-tier macro news from the US docket later on Tuesday.

AUD/USD Levels to watch   

At 0.7502, the pair finds the immediate support located at 0.7494 (Daily low & pivot). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7461/55 (Jan 17 & 16 low) and below that 0.7400 (zero figure). On the flip side, the immediate resistance at 0.7544/56 (200 & 10-DMA) above which gains could be extended to the next hurdle located 0.7600/05 (round number/ 20-DMA) and 0.7625/36 (50-DMA/ March 7 high).