The AUDUSD duo exchange rate remains over 0.6500 level, with no movement following China’s inflation numbers.

Highlights

AUDUSD is expected to consolidate yesterday’s after-US CPI drop to more than a week trough.
Predictions on the Federal Reserve delaying rate cuts support the US dollar and limit the unit’s upward potential.
The China’s inflation data are tender, providing not much impact or drive to the Australian dollar.

The AUDUSD unit fluctuates in a confined trade band throughout Thursday’s Asian period. Consolidating yesterday’s heated American CPI-lead drop to a more than 1-week bottom. The spot rates remain stable over the psychological level of 0.6500mark.  As well as shift minimally amid the announcement of the Chinese inflationary numbers.

Fundamental Picture

The NBS (Bureau of Statistics) stated that the Chinese consumer price inflation fell above what was expected in March. Dropping 1 percent, in contrast to an increase of 1% in in February. On an annual basis, the overall CPI fell to 0.1 percent from 0.7 percent last month, beating disappointing forecasts of a 0.4 percent gain. In addition, the PPI, which gauges wholesale costs at the production gates, fell 2.8 percent YoY. Representing a 18th straight month of reduction & suggesting ongoing negative tendencies. That, for a larger degree, dominates an increase in Australia’s consumer inflation forecasts to 4.6 percent during April from 4.3 percent previously. Giving no real momentum to the AUD.

AUD Fundamental Analysis

The U.S dollar, on the contrary, moves down amidst taking profits.  Following yesterday’s rapid rise to its highest point until the 14th Nov. Providing a little cushion for the AUDUSD unit. The major Greenback corrected slide, nevertheless, remains difficult in light of forecasts believe the Fed would postpone reductions in rates due to high inflation. That, together with a typically softer tenor in the stock markets, could operate to provide a push for the US dollar.  Thus limit the risk-specific AUD prompting cautious optimistic investors.

Technical Analysis

The Australian dollar fell substantially in response to the U.S. CPI report. During the course of things, the price fell under a group of rising MAs, ranging from 0.6541 to 0.6553 mark. It additionally dipped beneath a previous swinging threshold of 0.6523 level. These levels have become opposition to any rebound surge.

To the negative side, the next objective region is the range of 0.6476 to 0.6486 area. Beneath it is the support area of 2024 located at 0.64417 level.

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