• AUD/USD eased slightly to trade around 0.6543 as investors digested Australian inflation figures.
• Australian data showed consumer prices rose 0.2% in the third quarter, a little lower than expected, bringing annual inflation down to a 3-1/2-year low of 2.8% and back in RBA’s2%-3% target band.
• Headline inflation fell due to government cost-of-living subsidies and lower petrol prices, though services inflation remains stubbornly high..
•Technical signals are strongly bearish as RSI is at 43, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 0.6573(Daily high), any close above will push the pair towards 0.6618(38.2%fib).
• Support is seen at 0.6535(23.6%fib) and break below could take the pair towards 0.6500 (Psychological level).
Recommendation: Good to sell around 0.6550, with stop loss of 0.6630 and target price of 0.6450
