AUDUSD: Support at 0.7736/0.7641, resistance at 0.7850/0.7912

The dollar bulls are once again looking to have re-established their control on proceedings. US inflation may have dropped by 0.1% but with core prices still positive, along with strong durable goods orders the dollar has rallied. This has meant after a weeks of consolidation in the forex markets we may now be ready to finally see some direction coming through once more. Equity markets remain positive, albeit in the case of the S&P 500 and the FTSE 100 it is a slow grind. It is only the DAX that has been able to make significant upside as the falling price of oil has weighed down the other indices.
Wall Street closed slightly weaker yesterday with the S&P 500 down 0.2%, whilst Asian markets are once again a little mixed although the Nikkei 225 continues to trade around multi-year highs, although today’s move was all but flat. European markets have opened the day with a slightly corrective outlook as once again the FTSE 100 strives to painstakingly looks to close at an all-time high.
After yesterday’s strong moves for the dollar there is a small degree of unwinding today, with Euro, Sterling and the Yen all slightly positive. In fact, with the oil price showing signs of support overnight, the commodity currencies (Loonie, Kiwi and Aussie) also higher. Traders will be looking out for the German inflation data which is released throughout the morning today. The data culminates at 1300GMT with the countrywide reading, which is expected to stay at -0.5% on the HICP. Today we also have the second reading of US GDP today (Preliminary), which is expected to show a slight dip back to 2.1%.