AUD/USD Extends CPI-Led Sell-Off, Attacks 0.7600
The bearish pressure around the AUD gained further traction heading into Europe open, knocking-off AUD/USD to fresh weekly lows ahead of 0.76 barrier.
AUD/USD erodes more than 150 pips
Currently, the AUD/USD pair sinks -1.78% to fresh one-week lows of 0.7617, poised to test 0.76 handle. The Aussie remains heavily offered in early Europe as the European traders hit their desks and react negatively to the poor Australian CPI figures released earlier today.
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.
Moreover, the recent sell-off in the iron-ore prices also exacerbated the pain in the resource-linked Aussie. Further, comments from Goldman Sachs, citing that the Wall Street banker expects RBA rate cut next week, also weighed down on the AUD/USD pair.
Looking ahead, markets continue weigh RBA easing chances, while the main highlight for today remains the FOMC meeting outcome due to be announced 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 0.7600 (round number). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7529 (50-DMA).