- Weaker-than-expected CPI data drags AUD/USD lower, pair hits fresh 6-week lows at 0.7509.
- China PPI or factory gate prices rose 7.8% y/y in February; its fastest rate since 2008, but Aussie unimpressed.
- ADP report was the main catalyst for further upside in the greenback overnight.
- AUD/USD is extending slump, has broken below 38.2% Fib retrace of 0.7160 to 0.7740 rally.
- Immediate support lies at 0.7510 (100-DMA), break below will see further downside.
- Support levels - 0.7475 (Sept 16, 19 lows & cloud top), 0.7458 (Jan 16 low), 0.7450 (50% Fib), 0.74
- Resistance levels - 0.7560 (5-DMA), 0.76 (23.6% Fib), 0.7642 (20-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-extends-gains-after-RBAs-neutral-stance-upside-likely-limited-good-to-go-short-on-rallies-575644) is progressing well.
Recommendation: Book partial profits at lows, lower trailing stop to 0.7560, hold for 0.7450.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -76.9299(Bearish), while Hourly USD Spot Index was at 101.655 (Highly bullish) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
