FxWirePro: AUD/USD Trades With a Neutral Bias, Remains capped Below 5-DMA at 0.7664
- Surprisingly weak Australian CPI numbers on Wednesday saw sharp slump in AUD/USD.
- The pair is recovering from post CPI lows at 0.7548 and has edged above the 0.76 handle.
- Data released earlier today showed Australia's Producer Price Index came in at -0.2% in Q1, easing from +0.3% in the previous quarter and missing the market forecast for a +0.2% reading.
- Upside in the pair has been capped below strong resistance at 0.7664 (5-DMA), breaks above will finds next resistance at 0.7680 (Mar 18th lows).
- Supports on the downside are seen at 0.7619 (April 14th lows), 0.7615 (Mar 30 lows) and then 0.76.
- Gains are not sustainable, we see potential for drag in the pair to further lows. Techs do not support upside.
- 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.
The material has been provided by InstaForex Company - www.instaforex.com