• AUD/USD slipped lower on Wednesday after Australia's second-quarter inflation data came in slightly below market expectations, reducing expectations that the Reserve Bank of Australia will need to tighten monetary policy further in the near term
• Australia's headline CPI rose 0.6% quarter-on-quarter and 4.0% year-on-year in the second quarter, missing Reuters poll forecasts of 0.7% and 4.1%, respectively.
• The trimmed mean CPI, the RBA's preferred core inflation measure, increased 0.8% quarter-on-quarter, below the expected 0.9%, while annual trimmed mean inflation slowed to 3.6%, compared with market expectations of 3.7%.
•The softer reading suggested inflationary pressures continue to ease, reinforcing expectations that the RBA may adopt a more cautious policy stance.
• Geopolitical tensions returned to the forefront after Iran reportedly launched missiles at a U.S. military base in Jordan, prompting a sharp rebound in oil prices.
• Immediate resistance is located at 0.6987(50%fib), any close above will push the pair towards 0.7029(Higher BB).
• Support is seen at 0.6917(50%fib) and break below could take the pair towards 0.6899(Lower BB).
Recommendation: Good to sell around 0.6960 with stop loss of 0.7050 and target price of 0.6900
