AUD/USD consolidates at the trend line hurdle, ignores Aussie PPI data
|AUD/USD remains flat lined around 0.7470 (resistance offered by trend line coming from Mar 21 high and Mar 30 high) following the Aussie PPI release.
The Producer Price Index (PPI) came-in at 1.3% y/y in the first quarter, which is significantly higher than the previous quarter’s 0.7% reading. The quarter-on-quarter reading remained unchanged at 0.5%.
The uptick in the annualised figure suggests CPI inflation may pick up pace ahead, but, the AUD is in no mood to strengthen. Moreover, the data released earlier this week showed a drop in the Australia headline consumer price inflation in the first quarter.
With treasury yields going nowhere, there is little incentive for traders to boost the American dollar. However, things might change later if the US preliminary Q1 GDP betters estimates.
AUD/USD Technical Levels
A break below 0.7455 (Apr 26 low) would open up downside towards 0.7430 (Jan 12 low) and 0.70 (zero figure). On the other hand, a break above 0.75 (5-DMA) would expose hurdle at 0.7522 (10-DMA) and 0.7530 (100-DMA).
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