AUD/USD Slammed to 0.7600 Mark on Weak Australian CPI Data
AUD/USD Slammed to 0.7600 Mark on Weak Australian CPI Data
The AUD/USD
pair witnessed a sharp fall on Wednesday, dropping to 0.7600 round
figure mark, as Australian core CPI fell to its lowest level since 1999.
Surprise drop in CPI fuels rate cut speculation
The
official data released today showed headline inflation falling by 0.2%
for the March quarter. Compounded with the ongoing concerns over Chinese
economic slowdown, the unexpected fall in CPI is now fueling
speculations of a rate cut by the Reserve Bank of Australia. With talks
of a Fed rate-hike remains high on the agenda, RBA rate cut speculations
might continue exerting pressure on the pair in the near-term.
Today's
fall has dragged the pair well below its 20-day SMA support and the
pair has failed to register even a minor recovery from lower levels.
With hourly RSI dropping to near-term oversold conditions, the pair
might consolidate near 0.7600 before it resumes its near-term downward
trajectory.
Technical levels to watch
A
sustained weakness below 0.7600 mark, the pair clearly seems to be
headed towards its next major support near 0.7540 area before dropping
to test 50-day SMA support, currently near 0.7515-0.7500 round figure
mark.
On the upside, attempts of recovery might now confront
immediate resistance near 0.7625-30 area and any further up-move now
seems to be capped at 0.7650 strong horizontal resistance.
