FxWirePro: AUD/USD struggles at 0.77 handle, bias lower
Charts show scope for some downside in AUD/USD, but fundamentally it is difficult to argue for AUD downside. Rally in iron ore and steel prices, plus by oil’s resilience, argues for an extension of existing AUD speculati…
Charts show scope for some downside in AUD/USD, but fundamentally it is difficult to argue for AUD downside.
Rally in iron ore and steel prices, plus by oil’s resilience, argues for an extension of existing AUD speculative longs.
Domestic data (Q1 CPI due Wed) adds to the case for the RBA to maintain a steady hand.
Expectations are for 0.4% q/q, 1.9% y/y headline inflation, 0.6% q/q for the average of the RBA core measures, leaving these at 2.0% y/y, the bottom of the band.
That said, daily charts show some weakness. Pair struggling at the 0.77 handle, trades a tight range.
Strong resistance seen around 0.7730 levels, Stcohs and MACD are biased lower.
