Inflation tumbles, AUDUSD skids.
“Australia’s inflation slowed down slightly; bets for a major rate hike tumbled.”
Market dynamics shift swiftly during Asian trading session following the release of headline inflation data from Australia. During second quarter, annual rate of Consumer Price Index climbed to 6.1%, a tad lower than estimates of 6.3%. Evidently, the data has wiped out bullish bets for a 75-basis point rate hike from Bank of Australia, with most investors settled in for only 50-basis point. For the time being, market participants will most likely wait for Federal Reserve’s policy results that could set the tone for mid-term.
Quick recap on AUDUSD
The pair remain subjected to downward trendline, a major inhibitor of any possible bullish recovery from the downside.
AUDUSD Weekly Technical Analysis
From weekly perspective, the pair rebounds from lower level while overall bullish momentum remains short-lived.
AUDUSD Daily Technical Analysis
From daily perspective, the pair stages a pullback near the downward trendline, with MACD showing similar pattern.
ORDER: SELL STOP
STOP LOSS: 0.6895
Target 1: 0.6770
Target 2: 0.6730
ZFX Analyst’s Comment
AUDUSD is skewed towards the downside as it remains subjected towards downward trendline. We expect the pair to trend lower after closing below 0.6850.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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