28 Apr 2016
AUD/USD: steady in Asia after strong supply
AUD/USD is currently licking its wounds after yesterday's CPI data and there are few signs that it is about to make a recovery.
AUD/USD dropped sharply yesterday on the back of the CPI data that fell to its lowest level since 1999. The official data released today showed headline inflation falling by 0.2% for the March quarter. Today, the FOMC was on hold, but the removal of strong language over global fears enabled the greenback some room to the upside before covering took place and the greenback fell away again.
AUD/USD levels
The Aussie attempted a recovery recently back to the 0.7850 target level (38.2% retracement of move down from 2014), but the sellers too the opportunity to deny the bulls and the price fell below last week's low at 0.7597. The next stop is the 50 dma at 0.7514and April lows of 0.7491.
AUD/USD dropped sharply yesterday on the back of the CPI data that fell to its lowest level since 1999. The official data released today showed headline inflation falling by 0.2% for the March quarter. Today, the FOMC was on hold, but the removal of strong language over global fears enabled the greenback some room to the upside before covering took place and the greenback fell away again.
AUD/USD levels
The Aussie attempted a recovery recently back to the 0.7850 target level (38.2% retracement of move down from 2014), but the sellers too the opportunity to deny the bulls and the price fell below last week's low at 0.7597. The next stop is the 50 dma at 0.7514and April lows of 0.7491.