• AUD/USD traded flat on Monday as investors awaited key Australian inflation CPI data this week.
• The Australian Bureau of Statistics is set to unveil its new comprehensive monthly CPI figures on Wednesday, phasing out the old, incomplete dataset. A Reuters poll showed weighted annual CPI is expected to be sticky at 3.6%.
• Housing and market-services prices are in sharp focus for investors seeking a more accurate gauge of inflation.
• Swaps imply little chance of a rate cut from the RBA until May next year when a move is about 50% priced in, after an inflation surge in the last quarter dashed hopes for any more policy easing.
• Immediate resistance is located at 0.6496(38.2%fib), any close above will push the pair towards 0.6515(SMA 20).
• Support is seen at 0.6424(23.6%fib) and break below could take the pair towards 0.6417 (Lower BB).
Recommendation: Good to sell around 0.6470, with stop loss of 0.6550 and target price of 0.6430
