Surprised to see the CPI data, AUD/USD is sinking even lower!
As expected by analysts, the price on the AUD/USD chart is showing further declines after failing to continue the gains at the beginning of the week. As the US dollar weakened earlier in the week, the Australian dollar failed to take advantage of the opportunity to rise as the focus turned to Australian inflation data which was expected to decline. After looking at data releases in the Asian session just now, Australia's annual reading of the consumer price index (CPI) for March came in at 6.3%, lower than the expected 6.5%, and further down from the previous month at 6.8%. This situation is seen to be more in line with the implementation of the Reserve Bank of Australia (RBA) which has started to stop the tightening of their monetary policy before. Thus, the Australian dollar is seen as more likely to experience further depreciation in its trading value. It can be observed that the price movement on the AUD/USD chart in the Asian session continues to decline lower following the daily decline of 80 pips yesterday. After reaching the 0.66200 level in the New York session yesterday, the price continued to decline beyond that level following the reaction to published inflation data. The decline is expected to continue further towards the concentration zone at 0.65700-0.65400 to record the latest 5-month low. However, if there is another surge in price, the rise is seen to test the closest resistance around 0.66500 before reaching the important level of 0.67000 again. If the following obstacles have been successfully overcome, then investors will be more optimistic again expecting the price increase to continue to a higher level.