- AUD/USD is extending downside for the 6th consecutive session, down 0.28% on the day.
- Inflation, as measured by the Producer Price Index (PPI) dropped to 0.2 percent q/q in Q3 vs previous 0.5 percent.
- In annualised terms, PPI cooled to 1.6 percent from 1.7 percent.
- The pair has broken below major support at 200-DMA and is poised for further declines.
- Technical bias is bearish. RSI and Stochs biased lower, RSI below 50. MACD shows bearish crossover. We see -ve DMI dominance and ADX is above 25 and rising.
- Markets now await the US GDP report due later today for further upside in the greenback.
Previous Reference: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-holds-200-DMA-support-further-weakness-only-on-break-below-971530).
Recommendation: Good to go short on rallies around 0.7645/55, SL: 0.77, TP: 0.76/ 0.7570/ 0.7535.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -36.2674 (Neutral), while Hourly USD Spot Index was at 82.8621 (Bullish) at 0345 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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