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28 Jan 2015
AUD/USD bounces on a near miss in CPI
FXStreet (Guatemala) - AUD/USD is currently bid and 0.7990 and testing the bears commitments ahead of the 0.8000 barrier.
AUD/USD has rallied on the back of the CPI data that read slightly below expectations 1.7% vs 1.8% year on year and 0.2% vs 0.3% month on month. This is not the biggest miss although there maybe doves aligned in the RBA at the next meeting who will be revived on this data and concerned on subdued price pressures over the next couple of years.
This rally maybe short lived on the back of sell the rumour buy the fact and faded on attempts through 0.8000. Levels there we can expect to find resistance coming initially at 0.8034 (7th Jan low), then 0.81221 (20 day ma) while the major resistance comes as the 0.8201 downtrend. Rate cut sentiment will dominate until the RBA meeting.
AUD/USD has rallied on the back of the CPI data that read slightly below expectations 1.7% vs 1.8% year on year and 0.2% vs 0.3% month on month. This is not the biggest miss although there maybe doves aligned in the RBA at the next meeting who will be revived on this data and concerned on subdued price pressures over the next couple of years.
This rally maybe short lived on the back of sell the rumour buy the fact and faded on attempts through 0.8000. Levels there we can expect to find resistance coming initially at 0.8034 (7th Jan low), then 0.81221 (20 day ma) while the major resistance comes as the 0.8201 downtrend. Rate cut sentiment will dominate until the RBA meeting.