AUD/USD is currently trading at 0.7970 with a high of 0.8026 and low of 0.7899.
AUD/USD is stablising since the drop back down through the 0.80 handle and has caught a minor bounce at 0.7940, and has come out of the consolidating and was paid at 0.7960, breaching the high of the 27th Jan hourly stick. The CPI bullishness was short lived, with the headline coming in as a near miss overnight, but catching the markets attention to the core/trimmed data that was 02% better than expected Q/Q.
Technically, for the upside and beyond the CPI spike, Karen Jones, chief analyst at Commerzbank sees initial resistance is 0.8034 (7th Jan low), then 0.8100 (20 day ma). "Key resistance is the 0.8189 downtrend. A close above here is needed to alleviate the bearish pressure and would initiate a deeper retracement to 0.8262/86 (15th Jan high and 55 day ma)." Meanwhile, in respect of the downside, Jones said, "AUD/USD recent low at 0.7860 has been accompanied by a large divergence of the daily RSI, which leads us to suspect that the downside is exhausted for now"
AUD/USD is stablising since the drop back down through the 0.80 handle and has caught a minor bounce at 0.7940, and has come out of the consolidating and was paid at 0.7960, breaching the high of the 27th Jan hourly stick. The CPI bullishness was short lived, with the headline coming in as a near miss overnight, but catching the markets attention to the core/trimmed data that was 02% better than expected Q/Q.
Technically, for the upside and beyond the CPI spike, Karen Jones, chief analyst at Commerzbank sees initial resistance is 0.8034 (7th Jan low), then 0.8100 (20 day ma). "Key resistance is the 0.8189 downtrend. A close above here is needed to alleviate the bearish pressure and would initiate a deeper retracement to 0.8262/86 (15th Jan high and 55 day ma)." Meanwhile, in respect of the downside, Jones said, "AUD/USD recent low at 0.7860 has been accompanied by a large divergence of the daily RSI, which leads us to suspect that the downside is exhausted for now"
