AUD/USD Crashes 1 Big Figure on Aus CPI Shocker
The AUD/USD pair plummeted almost 100-pips in an immediate reaction to the Australian CPI report, which surprised markets to the downside.
AUD/USD drops from daily peaks at 0.7765
Currently, the AUD/USD pair slumped almost -1% to fresh six-day lows of 0.7630, crashing further below 0.77 handle. The Aussie shaved-off gains and plunged sharply after the Australian economy peaked into deflation, with the CPI report negatively surprising markets.
Australia’s Q1 headline CPI figures came in at -0.2% q/q versus +0.2% expected and +0.4% previous. While the trimmed mean CPI stood at +0.2% versus +0.5% expected and against +0.6% last.
The inflation report from the OZ economy came in as shocker to the markets and calls for further rate cut by the RBA in the coming months. Meanwhile, markets come to terms with the OZ data as the focus now remains on the FOMC verdict due later in the NY session.
AUD/USD Levels to watch
The pair finds the immediate resistance at 0.7700 (round figure) above which gains could be extended to the next hurdle located at 0.7741 (1h 20 & 100-SMA). On the flip side, the immediate support located at 0.7616/00 (Apr 14 Low/ round number). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7530 (50-DMA).