FxWirePro: AUD/USD holds firm as investors digest Australian CPI data

• AUD/USD strengthened on Wednesday as  investors digested Australian CPI data.

• U Data from the Australian Bureau of Statistics showed CPI rose 0.9% in Q1, slightly above the 0.8% forecast, driven by a 16.3% surge in electricity prices following the end of some government rebates.

• Australia’s trimmed mean core inflation rose 0.7% in Q1, slightly above the 0.6% forecast, but the annual rate slowed to a three-year low of 2.9%—back within the RBA’s 2–3% target range for the first time since late 2021.

• The Reserve Bank of Australia is expected to cut its cash rate by 25 basis points to 3.85% in May, with markets anticipating further easing to 2.85% by year-end.

• At GMT 05:55, The Australian dollar  was last  trading up 0.54% to 0.6416

•  Immediate resistance is located at 0.6464 (23.6%fib), any close above will push the pair towards 0.6553(Higher BB).

•  Support is seen at 0.66372(38.2%fib) and break below could take the pair towards 0.6296(50%fib).

 Recommendation: Good to buy around 0.6400 with stop loss of 0.6320 and target price of 0.6480