AUD/USD off lows but still under 0.6840

The AUD/USD pair is trading modestly lower on Wednesday. After the beginning of the American session, it recovered from the two-week low it reached at 0.6820 and rose to 0.6833. Still, the bias points to the downside in the pair. 

Price actions remained quiet following U.S. inflation data and also after the release of the remarks of Chairman Powell to the Joint Economic Committee. He mentioned interest rates are unlikely to change as long as economic growth continues. The US CPI showed mixed numbers, not significantly away from expectations. 

The U.S. Dollar is posting mix results across the board. The DXY is flat, hovering around 98.30, after reaching earlier a fresh monthly high. US yields today are retreating and limit the decline in AUD/USD. 

The AUD/USD continues to move within a descendant channel in the short-term. A consolidation on top of 0.6850 would invalidate the bias and favor a consolidation or a recovery. The next resistance is seen at 0.6880. 

On the flip side, the bearish pressure is likely to prevail as long as AUD/USD holds under 0.6835. Below daily lows, the immediate support lies at 0.6805/10 and then 0.6780.