AUD/USD: weighed on poor CPI before May's RBA

AUD/USD has started to make a recovery of the downside play from the U.S. afternoon's session commencing at 0.7694 and finishing up at the lows of 0.7621.

The price is testing the resistance of the bearish 100 sma at 0.7628 and is riding the weakness of the greenback after the FOMC's less than hawkish tone earlier in the week and the GDP data from overnight that shows the momentum the economy had been making is now slowing. Oil and gold were well bid overnight, offering some support to the Aussie ahead of the Asian closing session that will bring us RBA's assistant Debelle speaking and some second tier numbers in private sector credit and producer prices.

AUD after weak Q1 CPI inflation - Nomura


Meanwhile, this week's CPI for Australia will keep the bulls penned in until next May's RBA.

RBA: Low CPI to see a 25bps cut in May - NAB

AUD/USD levels

AUD/USD had been closing in on the 20 dma at 0.7661, supported by the weekly 10 sma at 0.7549. However, the pair remains in bearish territory below the 0.7850 target level as being the 38.2% retracement of move down from 2014 and the offers fall in where the 20 sma on the 4hr sticks falls in at 0.7659. On a reversal, the next stop is the 50 dma at 0.7514 and April lows of 0.7491.

Nikkei risk has turned to the downside - FXStreet

The Nikkei sold off hard this Thursday, plummeting 601 points or 3.61% to close at 16,666.05, as the JPY soared on the back of BOJ's inaction during its monthly economic policy meeting. Stocks’ slide was fueled by poor local inflation, down by 0.3% in March compared to a year earlier, the first decline in five months.
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