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25 Apr 2013
Forex: AUD/USD closes slightly higher after Aussie CPI miss
FXstreet.com (Barcelona) - The AUD/USD closed the session up 8 pips at 1.0279. However, the pair was under pressure early in the Asia session, and traded as low as 1.0231 after the Australian CPI printed 2.5% actual vs. 2.8% forecast. The recent lack of improvement in economic data has many analysts predicting an interest rate cut by the RBA in coming months.
Analysts at NAB Global Markets noted, “Today’s low inflation read puts downside risk on our inflation forecasts and adds to the squeeze on the RBA. A rate cut in May is possible but probably too soon. June looks good for a cut and we still see a second cut later in the year.”
The short term technical set-up seems to be showing signs of improvement after the sharp reversal higher. According to Valeria Bednarik of FXStreet.com, “The AUD/USD ends the day with a positive tone, although found sellers around 1.0300 and barely added 20 pips on the day. The hourly chart shows an increasing bullish tone, with price above 20 SMA, slowly grinding higher, and momentum above 100 and heading north.
She went on to add, “In the 4 hours chart technical readings also turned positive, yet 1.0335 static resistance area ahs prove strong in the past: only steady gains above this level will favor further AUD recoveries, while slides below 1.0260 will put the pair back in the bearish track."
Analysts at NAB Global Markets noted, “Today’s low inflation read puts downside risk on our inflation forecasts and adds to the squeeze on the RBA. A rate cut in May is possible but probably too soon. June looks good for a cut and we still see a second cut later in the year.”
The short term technical set-up seems to be showing signs of improvement after the sharp reversal higher. According to Valeria Bednarik of FXStreet.com, “The AUD/USD ends the day with a positive tone, although found sellers around 1.0300 and barely added 20 pips on the day. The hourly chart shows an increasing bullish tone, with price above 20 SMA, slowly grinding higher, and momentum above 100 and heading north.
She went on to add, “In the 4 hours chart technical readings also turned positive, yet 1.0335 static resistance area ahs prove strong in the past: only steady gains above this level will favor further AUD recoveries, while slides below 1.0260 will put the pair back in the bearish track."