In my last report, on Wendesday, I concluded we were in for some choppy trading as a result of the expected release of local Aussie CPI. I was spot on here with the official CPI figure coming in around 0.7%, which was the highest reading since the July 2015 quarter. AUD/USD which again broke 0.7700 for a few fleeting moments following the CPI figure, then succumbed to selling pressure and is this morning back below 0.7600 following some risk off events overseas.
If we are to learn anything about currencies it is that we should look at currency pairs like AUD/USD over a few months and try to determine peaks and troughs, resistance and support levels. And its pretty clear after multiple attempts that AUD/USD is fighting strong resistance above 0.7700 and seemingly strong support below 0.7500.
In summing up, look to capitalise on the peaks and troughs with market order, call me to discuss what levels we can target for your business. U.S Advance GDP is released this evening, other than that have a great weekend.
DATA RELEASES TODAY:
USD - Advance GDP at 11.30pm
AUD EXCHANGE RATES:
AUD/USD – 0.7561
AUD/GBP – 0.6211
AUD/EUR – 0.6942
AUD/NZD – 1.0636
AUD/JPY – 79.57
***Above rates are indicative wholesale rates and intended as a guide only***
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Senior Corporate FX Dealer
Phone Patrick - +61 03 9099 8459