AUD/USD analysis: flirting with 0.8000 despite soft AU CPI
|AUD/USD Current price: 0.7996
The AUD/USD pair recovered from a daily low of 0.7877, achieved after the release of Australian quarterly inflation figures, well below market's expectations. Inflation in the three months to June was 0.2% higher, below previous 0.5% while the annual rate came at 1.9% from 2.1% in Q1. Core figures met market's forecast, coming below previous quarter final figures. The news pour cold water on expectations of a rate hike in Australia, as CPI is now below the bottom of the RBA's target range. Anyway, a disappointing Fed's statement sent the pair up to 0.8013, its highest in over two years, with the pair holding around 0.8000 ahead of the Asian opening, and clearly bullish given that in the 4 hours chart, technical indicators have resumed their advances within overbought territory, and following a consolidative stage, while the price accelerated further above a bullish 20 SMA. Despite overbought intraday, the risk remains towards the upside, supported by continued strength in equities and stocks.
Support levels: 0.7905 0.7870 0.7830
Resistance levels: 0.7985 0.8020 0.8050
View Live Chart for the AUD/USD
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