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27 Jan 2015
AUD/USD: Focus shifted to Aus CPI
FXStreet (Bali) - Market focus in Asian has shifted to the Australian Q4 CPI data, expected at 0.3%qq, 1.8%yy, with Jim Langlands, Founder at FXCharts, noting that the event will be closely watched for any possible hint of action from the RBA.
Key Quotes
"Anything below the estimate will cause the market to feel that an RBA rate cut is a real possibility and will put a dent in any potential recovery before then."
"Points to watch are at, on the downside are at 0.7900 and below here at 0.7880 and the trend low at 0.7857, where the base of the descending channel is providing some support. Under 0.7850, would head towards 0.7800 and then to 0.7765 (200 Month MA)."
"On the topside above 0.7975 will find decent sellers at 0.8000 (38.2% of 0.8230/0.7857), although if the CPI surprises to the topside (unlikely given the recent fall in petrol prices) it will get a real workout. Above here (doubtful) would see a run towards 0.8050 (50% pivot of 0.8230/0.7857) and then to 0.8085 (61.8%)."
Key Quotes
"Anything below the estimate will cause the market to feel that an RBA rate cut is a real possibility and will put a dent in any potential recovery before then."
"Points to watch are at, on the downside are at 0.7900 and below here at 0.7880 and the trend low at 0.7857, where the base of the descending channel is providing some support. Under 0.7850, would head towards 0.7800 and then to 0.7765 (200 Month MA)."
"On the topside above 0.7975 will find decent sellers at 0.8000 (38.2% of 0.8230/0.7857), although if the CPI surprises to the topside (unlikely given the recent fall in petrol prices) it will get a real workout. Above here (doubtful) would see a run towards 0.8050 (50% pivot of 0.8230/0.7857) and then to 0.8085 (61.8%)."