I’m still looking for buying opportunities on AUD/USD after Australian CPI rose at the fastest pace since Q4 2011, this caused AUD/USD to rally overnight.
Wait for a pullback to buy this pair around the 0.9370 to 0.9390 area with a profit target of 0.9470 to 0.9500 and a SL at 0.9350.
Overall Bias on this trade
This trade is based off a very strong inflation reading overnight. I remain fundamentally bullish on AUD in the long term but feel that 0.9500 may provide a solid cap for the price action for now.
The RBA have so far left rates unchanged and gave the market a neutral tone, however inflation is now close to the upper bound of the central bank’s 2-3% target band, which prompted fears that the central bank may subvert its neutral tone.
If the price falls down to 0.9200 – 0.9250 I expect the price to be supported, so these would be the best prices to buy AUD/USD for a longer term trade.At no time should anyone view the information presented anywhere on this website as advice, recommendation or proven. Everything reflected is merely opinion and may not be accurate. The purpose of the site is to express the opinions and views of Jarratt Davis. There is no intention to offer specific help, advice or suggestions to anyone reading any of the content posted here.
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