AUD/USD: Spiking on inline CPI data

FXStreet (Guatemala) - AUD/USD is currently on the bid post the CPI data from Australia and trading at 0.7764 at time of writing with a high of 0.7768 and a low of 0.7704.

AUD/USD spiked on the CPI data that coincides with the previous cut from the RBA and the decent jobs data that was previously recorded. The RBA have explained that data will be monitored and these CPI figures that have come in line with expectations, albeit with RBA trimmed mean CPI (YoY) (Q1) falling in at 0.1% better than the consensus, if the RBA are to act as early as next month at the next meeting, it is unlikely to be more than 0.25% decrease if anything at all, adding value to the Aussie currently.

Next resistance comes in at 0.7775 while through here and on a good performance n the 0.78 handle would lead us in to the February and March highs at 0.7912/38. "Key resistance is regarded as the 0.8034 early January low and a close above here is needed to negate medium term downside pressure," explained Karen Jones, chief analyst at Commerzbank.