• AUD/USD eased on Wednesday after softer-than-expected Australian inflation data for April eased immediate pressure on the Reserve Bank of Australia to maintain a tighter policy stance..
• Monthly CPI rose 0.4% m/m versus a 0.6% forecast, while annual inflation printed at 4.2% compared with expectations of 4.4%, reinforcing signs of moderating price momentum.
• On the Geopolitical front, U.S.-Iran peace negotiations remain highly uncertain following renewed U.S. strikes, with markets closely watching for any further escalation in geopolitical tensions.
• Iran has issued fresh warnings of retaliation, while Brent crude eased slightly in Asian trade but remained elevated near the $100 per barrel mark amid ongoing supply-risk concerns.
• Attention now turns to Australia’s Q1 capital expenditure data due Thursday, with a Reuters poll expecting a 1.0% quarter-on-quarter increase, which will help shape growth and investment expectations.
• Immediate resistance is located at 0.7186 (38.2%fib), any close above will push the pair towards 0.7231(May1st high).
• Support is seen at 0.7123(50%fib) and break below could take the pair towards 0.7105Lower BB).
Recommendation: Good to sell around 0.7160 with stop loss of 0.7200 and target price of 0.7100
