The o/n CPI release came in below expectations and looks likely to have put a halt on the RBA cutting rates in the short term, but the AUD has hardly collapsed and remains within recent parameters.
EUR/AUD’s failure again to break up and consolidate above the 1.2750/1.2800 is also helping support the AUD/USD, despite some reportedcross buying from leveraged names in the Asian session.
AUD/JPY sales in Asia have weighed on the AUD/USD, with the cross now sinking below tenkan line support at 93.72. Technical support/bids are now seen at 92.40/50 (16/17 Jan lows)
AUD/USD bids now rest in the 1.0525/35 region(talk of sovereign demand) ahead of larger down at 1.0500/10. Sell stops lurk just below ahead of technical support at the daily cloud top (1.0479) , Kijun line ( 1.0472) and 55 day MA (1.0465). Offers remain from 1.0570/80 up to a barrier at 1.0600. Tech res lies above at 1.0620/25 with buy stops above
AUD’s presently trading around 1.0540
