FxWirePro: AUD/USD trades with a neutral bias, remains capped below 5-DMA at 0.7664
Surprisingly weak Australian CPI numbers on Wednesday saw sharp slump in AUD/USD. The pair is recovering from post CPI lows at 0.7548 and has edged above the 0.76 handle. Data released earlier today showed Australia's Pr…
Surprisingly weak Australian CPI numbers on Wednesday saw sharp slump in AUD/USD.
The pair is recovering from post CPI lows at 0.7548 and has edged above the 0.76 handle.
Data released earlier today showed Australia's Producer Price Index came in at -0.2% in Q1, easing from +0.3% in the previous quarter and missing the market forecast for a +0.2% reading.
Upside in the pair has been capped below strong resistance at 0.7664 (5-DMA), breaks above will finds next resistance at 0.7680 (Mar 18th lows).
Supports on the downside are seen at 0.7619 (April 14th lows), 0.7615 (Mar 30 lows) and then 0.76.
Gains are not sustainable, we see potential for drag in the pair to further lows. Techs do not support upside.
Markets now focus on Australia’s very own ‘Super Tuesday’ (May3rd) when RBA will meet to decide policy. Dissappointingly weak CPI data sees a very strong potential for a rate cut.
