AUD/USD advances to test 0.7170 after Australian Inflation beats with 5.1%

AUD/USD has climbed above 0.7170 on higher-than-expected Australian inflation at 5.1%.
This has raised the odds of a hawkish stance by the RBA in May.
The DXY will likely display a consolidated move ahead after a decent upside move.

Sagar Dua FXStreet

The AUD/USD pair has rebounded sharply as the Australian Bureau of Statistics has reported the quarterly Consumer Price Index (CPI) at 2.1%, higher than the market consensus of 1.7% and the prior print of 1.3%. The Reserve Bank of Australia (RBA), in its last monetary policy meeting in the first week of April, announced to be data-dependent for a rate hike decision.

The RBA dictated that its policymakers do not see any price pressures yet that could compel the central bank to march for an interest rate elevation. The yearly Australian inflation has landed at 5.1%, significantly higher than the forecast of 4.6% and the prior print of 3.5%. The figure of 5.1% looks sufficiently higher than the targeted inflation of 2%. Therefore, investors should brace for a hawkish stance from the RBA in May’s monetary policy announcement.

Meanwhile, the US dollar index (DXY) is steady at around 102.35 after a firmer rally. The fundamentals are not dictating any sign of reversal in the asset. However, profit-booking could drag the mighty DXY lower. Progressive expectations of a jumbo rate hike by the Federal Reserve (Fed) in May are advocating the likes of the DXY. The announcement by Fed chair Jerome Powell in his testimony at the International Monetary Fund (IMF) meeting that a 50 basis point (bps) interest rate hike is on the cards has already spoiled the suspense much, which has improved the appeal for the safe-haven assets.

AUD/USD

Overview
Today last price	0.715
Today Daily Change	0.0027
Today Daily Change %	0.38
Today daily open	0.7123

Trends
Daily SMA20	0.7415
Daily SMA50	0.7357
Daily SMA100	0.7264
Daily SMA200	0.7293

Levels
Previous Daily High	0.723
Previous Daily Low	0.7118
Previous Weekly High	0.7459
Previous Weekly Low	0.7234
Previous Monthly High	0.7541
Previous Monthly Low	0.7165
Daily Fibonacci 38.2%	0.7161
Daily Fibonacci 61.8%	0.7187
Daily Pivot Point S1	0.7084
Daily Pivot Point S2	0.7045
Daily Pivot Point S3	0.6972
Daily Pivot Point R1	0.7196
Daily Pivot Point R2	0.7269
Daily Pivot Point R3	0.7308

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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