Aussie tumbles on soft CPI data
The AUD/USD fell sharply near 0.7605 after disappointing inflation data. This drop in Australia’s consumer prices raises speculations that the reserve bank of Australia (RBA) may cut rates or at least keep their easing program in play, thus putting more pressure on the Aussie. Breaking the long-term support 0.7595 creates a bearish signal toward 0.7555 and 0.7525 respectively.
However, the RBA statement and rate cut decision could support the Australian dollar and the AUD/USD could rally again after breaking 0.7775, thus touching next resistance levels 0.7805 and 0.7835.
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