AUD/USD: Aussie hit by poor CPI, but dollar unable to rally

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7910

The Aussie tumbled during Asian trading hours, following the release of the Q2 CPI figures, as inflation was below expected, missing the bottom of the RBA's target. Inflation advanced by just 0.2% in the quarter, well below previous 0.5% or the 0.4% expected, while yearly basis, inflation came down to 1.9% from 2.1%. Softer inflation cooled down further expectations of a rate hike in Australia, resulting in the AUD/USD pair falling to 0.7877. The support area held and ahead of Fed's meeting with the pair back above 0.7900, but now unable to surpass a flat 20 SMA in the 4 hours chart, flat around 0.7930 and the immediate resistance. In the same chart, technical indicators have turned south within neutral territory, but lack strength, not enough to confirm a bearish extension. The market is all about the Fed this Wednesday, and upcoming direction will depend on how the market understands the statement.

Support levels: 0.7905 0.7870 0.7830

Resistance levels: 0.7985 0.8020 0.8050

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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