AUD/USD Turns Flat, 0.7600 Eyed
The AUD/USD pair erased most of its day's gain and is currently trading at 0.7627, nearly unchanged from yesterday's close of 0.7625.
Following Wednesday's release of weak Australian CPI number that showed inflation dropping below 0.0% has now fueled speculations of rate-cut by the Reserve Bank of Australia, which eventually led to sharp declines in the AUD/USD pair on Wednesday. With the overhang of an expected rate-cut, the pair's near-term upside is likely to be capped. The pair did manage to register a mild recovery on Thursday and on Friday, led by overall USD weakness on BoJ disappointment.
Technical levels to watch
From current levels, 0.7600 area (0.7600-0.7590 Wednesday's closing level) seems to provide immediate support, which if broken should take the pair towards 50-day SMA support near 0.7535 region. Failure to hold these immediate support levels seems to open room for further downfall, possibly below 0.7500 psychological mark, towards 0.7490-80 horizontal area.
Meanwhile on the upside, day's peak near 0.7670 level might continue attract fresh offers. Should the pair manage to clear this immediate hurdle, it could witness further recovery towards 0.7720-25 area, which now seems to cap any further near-term upside for the pair.