AUD/USD Outlook: Aussie pressures key 0.70 support on fresh acceleration after CPI miss

Slobodan Drvenica Windsor Brokers

AUDUSD

The Aussie dollar fell to new multi-week low at 0.7027 in Asia on Wednesday, down nearly 1% for the session after release of Australian inflation data.
Q1 CPI miss (q/q 0.0% vs 0.2% f/c; y/y 1.3% vs 1.5% f/c) increases risk of RBA rate cut in the next policy meeting in May and weighs on Aussie, along with rise of Us dollar.
Today’s bearish acceleration marked over 76.4% retracement of bear-leg from 0.7205 (17 Apr high) and approached key support at 0.70 (8 Mar low / 50% retracement of 0.6706/0.7295 / psychological support) where strong bids can be expected.
Firm bearish setup of daily techs is supportive for further weakness, but oversold conditions suggest that bears may take a breather before attacking 0.70 support.
Broken base of thickening daily cloud (after cloud twisted on Monday), lays at 0.7090 and is expected to limit upticks and keep bears intact.

Res: 0.7080; 0.7090; 0.7116; 0.7137
Sup: 0.7027; 0.7000; 0.6955; 0.6925

Interested in AUDUSD technicals? Check out the key levels

1. R3 0.7216
2. R2 0.7184
3. R1 0.7143
PP 0.7111
1. S1 0.707
2. S2 0.7038
3. S3 0.6997

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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