Data released earlier today showed Australia’s Q1 headline CPI figures at -0.2% q/q versus +0.2% expected and +0.4% previous.
The trimmed mean CPI stood at +0.2% versus +0.5% expected and against +0.6% last.
Poor data raised chances of a rate cut at RBA May 3rd meet, chances for a rate cut by the RBA in May stand at 49% probability vs 16% before the CPI .
The pair went crashing further below 0.77 handle. Is holding minor support at 0.7631, techs biased lower. Downside bias could see test of 0.7525 (rising ) and then 0.75 levels.
The pair finds immediate support at 0.7631 ( April 18th lows), while resistance is seen at 0.7708 (5-DMA).
Liquidity is likely to be low until the FOMC. USD remains on the back foot ahead of the FOMC and weaker USD likely to provide broad support to commodity markets.
Good to sell rallies around 0.7640/50, SL: 0.77, TP: 0.7620/0.76/0.7580/0.7525