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AUD/USD through key supports; CPI approaches

FXStreet (Barcelona) - AUD/USD is trading at 0.8769, down -0.11% on the day, having posted a daily high at 0.8786 and low at 0.8763.

AUD/USD has come off since it's highs in the early US session having put some more points on the board post the positive Chinese data. The pair has since given back gains all the way through R1 and then the pivot gave out at at 0.8778, making for a bearish outlook into the early Asian shift. Coming up today, we get the CPI data for Q3 which Westpac looks for an above-consensus reading on headline inflation but is in line with the market on core CPI.

“We expect 0.6% q/q, 2.4% y/y on total CPI, with the drop from 3.0% y/y driven in large part by the Q3 13 reading of 1.2% dropping out and some downward pressure on utility prices from the removal of the carbon tax. Consensus is 0.4% so there could be a flicker higher on AUD in response”.

RBA Outlook: Steady as she goes

The analysts at Westpac explained that with a sluggish labour market keeping a lid on wages, the RBA is likely to be comfortable with the inflation outlook at its Nov meeting and Statement on Monetary Policy.

AUD/USD noteworthy levels

Current price is 0.8769, with resistance ahead at 0.8777 (Hourly 100 SMA), 0.8778 (Daily Classic PP), 0.8779 (Daily Open), 0.8786 (Daily High) and 0.8791 (Hourly 20 EMA). Next support to the downside can be found at 0.8763 (Hourly 200 SMA), 0.8763 (Daily Low), 0.8759 (Yesterday's Low), 0.8752 (Weekly Classic PP) and 0.8752 (Daily Classic S1).

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