AUDUSD Rebounds After Better CPI Data

AUDUSD trades 0.32 percent higher at 0.6892 after Australia Consumer Price Index (year over year) came in at 1.6% above expectations of 1.5% in 2Q, the Consumer Price Index (QoQ) came in at 0.6% also above forecasts of 0.5% in 2Q. The Australia Private Sector Credit (YoY) declined to 3.3% in June from previous 3.6%. The previous week  Governor Lowe of Reserve Bank of Australia in a speech said that it’s reasonable’ to expect lower rates for longer time and RBA is prepared to ease policy further if needed.  FOMC policy decision later today, at which it is expected Fed to cut interest rates by 25 basis points will drive the pair for the rest of the week.

AUDUSD managed to break higher today after eight consecutive negative sessions helped by better CPI data. On the downside first support now stands at 0.6861 the today’s low, a level that if breached will enhance the slide toward the 0.6830 the low from June 18th. On the upside immediate resistance stands at 0.6914 the 100 hour moving average while more offers will emerge at 0.6957 the 50 day moving average. The short term momentum for AUDUSD is bearish for now and a move to lower levels looks possible.Don’t miss a beat! Follow us on Twitter.