FxWirePro: AUD/USD slips on less than anticipated Australian CPI data

• AUD/USD slipped lower  as the Australian dollar came under mild pressure after the latest inflation data showed consumer prices rose slightly less than economists had expected.

• Australia’s consumer price index increased 0.4% in August, falling short of expectations for a 0.5% rise. Lower clothing and travel prices partly offset higher fuel costs, while annual inflation picked up to 4.0%, reflecting broader price pressures.

• The trimmed mean measure of underlying inflation increased 0.2% in August, below the 0.3% forecast.

• Markets had been wagering on a hotter inflation result, so the miss was enough to see the chance of another hike in November drop to 20%, from 36% before the data.

•   Technically, AUD/USD remains vulnerable while trading below key moving-averages   .

• Immediate resistance is located at 0.7036(38.2%fib), any close above will push the pair towards 0.7133(50%fib).

• Support is seen at 0.6963(38.2%fib) and break below could take the pair towards 0.6915 (Lower BB ).

 Recommendation: Good to sell around 0.7000, with stop loss of 0.7050 and target price of 0.6900