• AUD/USD edged lower on Thursday as bets for a February rate cut grew following softer-than-expected CPI.
• Data on Wednesday showed consumer prices rose 0.2% in Q4, with annual inflation slowing to 2.4%. Core inflation dropped to 3.2%, below the expected 3.3%, and was 2.7% in December.
• Market is pricing in a 95% chance of a quarter point reduction in the 4.35% cash rate at the RBA's next meeting on Feb. 18.
• At GMT 05:12, the pair was trading down 0.17% at 0.6220
• Immediate resistance is located at 0.6275(50%fib), any close above will push the pair towards 0.6352(61.8%fib).
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• Support is seen at 0.6202(38.2%fib) and break below could take the pair towards 0.6147(Lower BB).
Recommendation: Good to sell around 0.6250 with stop loss of 0.6330 and target price of 0.6200
