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 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.
- Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-struggles-at-077-handle-good-to-sell-rallies-199724) is progressing. Hold for targets.
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