AUD/USD keeps the red, but finds some support near mid-0.7100s

   •  Mixed China inflation figures (CPI & PPI) prompt some profit-taking.
   •  The downside remains cushioned amid a weaker tone around the USD.
   •  US-China trade optimism further helps limit any meaningful downfall. 

The AUD/USD pair traded with a bearish bias through the early European session, albeit now seems to have found some support near mid-0.7100s.

The pair failed to capitalize on the overnight strong up-move to six-week tops, rather witnessed some profit-taking following the release of mixed Chinese inflation figures. Official data released this Thursday showed headline CPI fell short of consensus estimates and rose by 2.3% y/y rate, though was partly offset by mostly in line PPI print.

Meanwhile, the US Dollar remained on the defensive and hovered near two-week lows after the latest FOMC meeting minute reinforced the central bank's dovish policy tilt. The Fed's patient stance, coupled with the recent US-China trade optimism extended some support and helped limit deeper losses, at least for the time being.

With investors awaiting fresh updates from the ongoing US-China trade talks, today's US economic docket - featuring the release of March PPI figures and initial weekly jobless claims, will now be looked upon for some short-term trading opportunities later during the early North-American session.

Technical levels to watch