FxWirePro: AUD/USD Retakes 0.76 Handle, Broad USD Weakness Supports
- Broad USD weakness has helped AUD/USD recover lows of 0.7548 hit on Wednesday's trade.
- Surprisingly weak Australian CPI numbers on Wednesday saw sharp slump in AUD/USD.
- Strength in JPY on disappointment from BoJ which has kept the US dollar subdued has been the key trigger for the AUD/USD recovery.
- Gains are not sustainable, we see potential for drag in the pair to further lows.
- Markets now focus on Australia’s very own ‘Super Tuesday’ (May3rd) when RBA will meet to decide policy. Dissappointingly weak CPI data sees a very strong potential for a rate cut.
- Technicals are biased lower, weakness back below 0.7600 mark might continue to find support at 0.7530 (rising trendline), if broken drag till 0.75 likely.
- On the upside resistance is located at 0.7679 (5-DMA) ahead of 0.77 and then 0.7720 (10-DMA).
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