With Australian CPI data to be released in the new trading day, what levels are in play?

The Australian CPI data for the quarter will be released in the new trading day rotations of a move down to 1.0% from 1.4% last quarter. The year-on-year CPI level still remains comfortably above the inflation targets (at 5.4%).

Technically, the price of the AUDUSD has rebounded today after testing its 200-day moving average both yesterday and today. That moving average currently comes in at 0.6720.

The rebound to the upside has taken the price in between its 100-hour moving average currently at 0.67649, and its 200-hour moving average up at 0.67972 (call it 0.6800).

Both of those levels will be barometers for both the buyers and sellers through the CPI data.

  • If the inflation data is higher than expectations, look for a break of the 200-hour moving average, and a move toward the 61.8% retracement of 0.68256 followed by a swing area between 0.6838 and 0.6840.
  • Conversely, a lower-than-expected number would have traders pushing the price back below its 100-hour moving average at 0.67649. Break below that level with momentum and a retest of the 200-day moving average at 0.6720 would be the path of least resistance. Below that the 100-day moving average of 0.66884 would be targeted.

For now, with the pricing between the 200-hour moving average above in the 100-hour moving average below, the trading bias is neutral and waiting for the next shove.

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