AUDUSD moves lower helped by lower Australian CPI data overnight

The AUDUSD felt lower yesterday and for the most part stay below the 200 hour moving average (green line currently at 0.62597). In the early Asian session, the price sniffed that moving average, but still remained below. The Austrian CPI came lower than expectations:

• Headline CPI: +2.4% y/y (expected 2.5%, prior 2.8%).
• Headline CPI: +0.2% q/q (expected 0.3%, prior 0.2%).
• Trimmed Mean CPI (Core Inflation): +3.2% y/y (expected 3.3%, prior 3.5%).
• Trimmed Mean CPI (Core Inflation): +0.5% q/q (expected 0.6%, prior 0.8%).
• Weighted Median CPI (Core Measure): +3.5% y/y (expected 3.5%, prior 3.8%)

That decline, kickstarted the downside further away from the 200 hour moving average, and that momentum took the price to a low of 0.62095. The next key target on the downside comes at 0.61917 to 0.6200. Watch the initial lower after the CPI near 0.6227 as close short-term resistance. Above that the 0.62457 will be eyed.

This article was written by Greg Michalowski at www.forexlive.com.