Aussie holds lower on softer Chinese yuan today

<p>And in the case of AUD/USD, it keeps the retreat from 0.6900 at the end of last week going as price now slips back under the 0.6800 mark:</p><p>The Chinese yuan is significantly weaker today, as USD/CNY rises up from 7.18 to near 7.22 and that is weighing on aussie and kiwi sentiment. On the latter, even a stronger Q2 CPI report <a href="https://www.forexlive.com/news/new-zealand-q2-cpi-11-qq-vs-expected-10-20230718/" target="_blank" rel="follow">here</a> earlier isn't doing the job.</p><p>And generally speaking, even the better mood in the equities space is failing to provide much of a lift to risk currencies on the week.</p><p>Going back to AUD/USD, the pair is in a bit of a bind right now with near-term levels also caught in the middle. Price action is sitting in between its 100 and 200-hour moving averages at 0.6834 and 0.6763 respectively.</p><p>A break back above the former will still see key resistance close to 0.6900 from the highs in June and earlier this month. Meanwhile, a break below the latter will start to invite further downside pressure back towards the 200-day moving average of 0.6711 next potentially.</p>

This article was written by Justin Low at www.forexlive.com.