AUD/USD Declines Off CPI Miss And Potential RBA Cut
The below is the weekly chart of the USDOLLAR. Last week looks to be a bearish reference candle. I.e. a candle with a lower high to either side of it. If this week’s candle closes below last week’s low (green horizontal), it will give weight to the bearish reference candle scenario. Moreover the RSI(9) has dipped below 50 (blue rectangle), which is the bearish side of the oscillator. If price drops below the black dashed line it will effectively result in a lower peak followed by a lower trough, which is the classical definition of a downtrend. Australian CPI for the quarter came in at 0.0%, which missed the 0.2% forecast. The RBA is due to meet on 7 May and markets are now anticipating a 25bps cash rate cut to 1.25%.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.