AUD/USD second-guessing itself as consumer confidence knocks lower

• Aussie Consumer Confidence drops -0.6 percent as consumers feel slow wage growth.
• China inflation data to provide some knock-on pressure shortly.

The Aussie is hesitating in early Asia action, backing away from 0.7770.

The AUD/USD is tripping slightly after Westpac's Consumer Confidence survey printed a -0.6 percent decline, in comparison with the previous reading of 0.2 percent. The overall effect of the miss is likely to be limited with the Chinese inflation data due at 01:30 GMT.

The Chinese year-on-year Consumer Price Index figure is expected to print at 2.6 percent versus the previous 2.9 percent, while the Producer Price Index is also expected to contract slightly, forecast at 3.2 percent compared to the previous reading of 3.7 percent.

Following Chinese Inflation will be a speech from the Reserve Bank of Australia's (RBA) head, Phillip Lowe, who will be addressing markets after the RBA's recent dovish showing on their latest rate statement.

AUD/USD Levels to watch

As FXStreet's own Valeria Bednarik noted, "the 4 hours chart shows that the pair has recovered also above a bearish 200 EMA, the first time in over three weeks, also well above the 20 SMA that slowly gains upward traction. Technical indicators maintain their upward slopes near overbought readings, all of which points to a continued advance for this Wednesday."

Support levels: 07740 0.7700 0.7765

Resistance levels: 0.7785 0.7820 0.7850