- Aussie slumps across the board after downbeat inflation data dented RBA tightening expectations.
- Australia Q3 CPI came-in at 0.6% q/q vs. 0.8% expected. The annualised figure dropped from 1.9% to 1.8%.
- The RBA trimmed mean CPI cooled to 0.4% q/q from 0.5%.
- Focus now on US durable goods and home sales data. If the US durable goods orders beat expectations, we can expect further downside for the pair.
Technical Analysis: Bias bearish
- RSI and Stochs biased lower, RSI below 50
- MACD shows bearish crossover
- -ve DMI crossover on +ve DMI seen, ADX is showing a turn higher
- Price action has slipped below cloud and is on track to test 200-DMA
Support levels - 0.77, 0.7692 (200-DMA), 0.7642 (50% Fib)
Resistance levels - 0.7756 (38.2% Fib retrace of 0.7160 to 0.8125 rally), 0.78, 0.7798 (5-DMA)
Call update: We had advised a short in our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-Trade-Idea-966396).
Recommendation: Bias lower, book partial profits at lows, hold for 0.7692. Watch for violation at 200-DMA for further downside.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -160.788 (Bearish), while Hourly USD Spot Index was at 146.492 (Bullish) at 0420 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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