The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Thursday, decreasing the price of AUDUSD to less than 0.7600 following some key economic releases. The technical bias shall remain bearish because of a lower low in the recent downside move.
AUD/USD Technical Analysis
As of this writing, the pair is being traded around 0.7562 . On the upside, a hurdle can be noted near 0.7689, an immediate trendline resistance level ahead of 0.8000, the psychological level and then 0.8249, the high of the last major upside rally as demonstrated in the given below chart.
On the downside, a support can be noted around 0.7512, an immediate trendline support ahead of 0.7500 the psychological number and then 0.7412, the low of last major downside move as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 0.8024 resistance area is intact.
US Inflation
U.S. monthly consumer inflation rose moderately in May as gasoline price increases slowed, suggesting the Federal Reserve could continue to gradually raise interest rates this year.
The Consumer Price Index increased 0.2 percent last month, also as food prices were unchanged. That followed a similar gain in the CPI in April. In the 12 months through May, the CPI accelerated 2.8 percent, the biggest advance since February 2012, after rising 2.5 percent in April.
The surge in the annual CPI is largely the result of last year’s weak readings, which were driven by big declines in the prices of cell phone service plans and doctor fees, falling from the calculation.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.