The Aussie dollar dove on CPI data: Australian inflation tumbled to 1.3% y/y in March from 1.7% in the previous month, with the q/q figure unexpectedly turning negative for the first time since 2008, falling to -0.2%. The Aussie is nursing over 1.5% loss to the USD and is down by 1.7% versus the yen, which registers the biggest movement out of the currencies we track. The data has catalyzed speculation that the RBA will be forced to consider at rate cut at its May-3 policy meeting. AUD-USD clocked a nine-day low at 0.7623.
Technically, the 23.6 Fib level and Psychological 0.7600 area has held so far today, 0.7510 has 50 DMA and lower Bollinger band and the longer term daily support and 38.2 Fib sit at 0.7450. Upside resistance at the round numbers 0.7700 and 0.7800.
All eyes on the FOMC today, BOJ tomorrow and the RBA next Tuesday (May 3rd), an extremely interesting few days ahead.
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Chief Market Analyst
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About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
“My mission is to help you to become a confident and successful trader”
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