• AUD/USD dipped on Thursday as soft consumer spending data added to the case against a further rise in domestic interest rates.
• Australian data showed household spending fell 1.1% in April as consumers cut back on travel, clothing, and food amid weaker confidence from Middle East conflict concerns..
• Wednesday’s weaker-than-expected CPI data strengthened expectations that the Reserve Bank of Australia can keep rates unchanged for now.
• The report outweighed data showing business investment jumped 6.5% in Q1 due to strong demand for data equipment, much of which was imported.
• Markets now imply almost no chance of a June move, while the probability of an August hike has more than halved to 40%.
• Immediate resistance is located at 0.7141 (Daily high), any close above will push the pair towards 0.7177(38.2%fib).
• Support is seen at 0.7090(50%fib) and break below could take the pair towards 0.7067(Lower BB).
Recommendation: Good to sell around 0.7130 with stop loss of 0.7200 and target price of 0.7040
