AUD/USD looks south on below-forecast China PPI

• A big miss on China's PPI is bad news for the AUD, a commodity dollar and a proxy for China. 
• China's CPI matched estimates, Australia's consumer confidence hit two-year lows. 

An already weak Aussie Dollar could take a beating in the next few hours, courtesy of dismal Chinese inflation numbers released soon before press time. 

China's producer price inflation for June came in at 0.0% year-on-year, missing the expected rise of 0.3% by a big margin and down significantly from the 0.6% rise seen in the preceding month. Further, consumer price inflation rose 2.7% year-on-year, as expected. 

The big miss on factory-gate prices is bad news for the Aussie dollar and other commodity currencies. The AUD/USD pair is currently trading at 0.6923, representing 0.10% losses on the day. The pair hit a high of 0.6931 earlier today. 

The Australian currency has registered losses in the previous four trading days, falling from 0.7048 to 0.6920, on fears the US Federal Reserve's Chairman Powell will rein in expectations of aggressive monetary easing during his testimony to Congress on July 10. Also, dismal domestic data seems to have added to bearish pressures around the AUD. 

For instance, Australia's consumer confidence published by Westpac fell to two-year lows in July despite back-to-back rate cuts by the Reserve Bank of Australia and tax cuts by Australia's government. 

All-in-all, the pair appears on track to test the support at 0.6914, which is the 61.8% Fibonacci retracement of the rally from 0.6832 to 0.7048. 

Pivot points