Aussie Moves in Stiff Boundaries Ahead of Australia’s Quarterly Inflation Results Due Tomorrow; April 27, 2021
Australia’s CPI q/q
The Australia has scheduled to release CPI data on April 28, 2021 at 0130 GMT/0700 IST. Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate. Here, the average price of various goods and services are sampled and then compared to the previous sampling. If the actual data comes higher than forecasted, it will be good for AUD.
Let’s see how AUD has reacted during the previous data release:
Note: Important to make a note here that despite high impact news of Australia’s quarterly CPI data, the Actual movement was negligible after the data release. If one is having Open Position in AUD parity, can take a judgment from it and trade accordingly.
AUD/USD: The Aussie exhibits range bound movement against U.S. dollar and remains well supported below $0.78 mark. The pair made intraday high at $0.7803 and low at $0.7765 mark. Today a day as well as H1 chart with triple EMA confirms the bullish trend only. A consistent close above $0.7815 on H1 chart requires for the upside rally. Alternatively, reversal from here will drag the parity back below $0.7750 mark.
Key Resistances: $0.7815, $0.7838, $0.7867, $0.7899, $0.7928
Key Support: $0.7765, $0.7740, $0.7718, $0.7700, $0.7677
Take a look and do trade wisely!