Broad USD weakness has helped AUD/USD recover lows of 0.7548 hit on Wednesday's trade. Surprisingly weak Australian CPI numbers on Wednesday saw sharp slump in AUD/USD. Strength in JPY on disappointment from BoJ which ha…
Broad USD weakness has helped AUD/USD recover lows of 0.7548 hit on Wednesday's trade.
Surprisingly weak Australian CPI numbers on Wednesday saw sharp slump in AUD/USD.
Strength in JPY on disappointment from BoJ which has kept the US dollar subdued has been the key trigger for the AUD/USD recovery.
Gains are not sustainable, we see potential for drag in the pair to further lows.
Markets now focus on Australia’s very own ‘Super Tuesday’ (May3rd) when RBA will meet to decide policy. Dissappointingly weak CPI data sees a very strong potential for a rate cut.
Technicals are biased lower, weakness back below 0.7600 mark might continue to find support at 0.7530 (rising trendline), if broken drag till 0.75 likely.
On the upside resistance is located at 0.7679 (5-DMA) ahead of 0.77 and then 0.7720 (10-DMA).
