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).
