FxWirePro: AUD/USD extends break above daily cloud, Aussie ignores WPI miss

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading 0.43% higher on the day at 0.7247 at around 08:15 GMT

Previous Week's High/ Low: 0.7227/ 0.7086

Previous Session's High/ Low: 0.7233/ 0.7171

Fundamental Overview:

Wage Price Index released by the Australian Bureau of Statistics is an indicator of labour cost inflation and of the tightness of labour markets missed expectations.

Aussie however, ignored downbeat data and held gains amid mixed market sentiment.

Australia Q4 Wage Price Index printed at +0.7% quarter on quarter, inline with expectations, while year on year, it was 2.3% vs 2.4% expected. 

Following the data, the odds of an RBA rate hike in June dropped below 50%.

Technical Analysis:

- AUD/USD breaks above 110-EMA and daily cloud resistance 

- MACD and ADX support upside in the pair

- Volatility is high and rising and momentum is strongly bullish

- GMMA indicator shows minor trend has turned bullish on the daily charts

Major Support and Resistance Levels:

Support - 0.7235 (110-EMA), Resistance - 0.73 (55-week EMA)

Summary: AUD/USD poised for further gains. Scope for test of 55-week EMA at 0.73.