The Australian dollar fell significantly during the Asian session, its lowest since March 11 against the US dollar following the economic developments and data that followed the Australian economy and the lack of economic data on Wednesday by the US economy, the largest economy in the world.
At 02:02 GMT, the AUDUSD fell 0.84% to 0.7042 compared to the opening levels of 0.7102, after reaching its lowest level in six weeks at 0.7036, while the highest of the session at 0.7103.
We followed the Australian economy to release inflation data with the release of the consumer price index, which showed stability at zero levels versus 0.5% growth in the fourth quarter, in contrast to expectations of slowing growth to 0.2%, while the core reading of the consumer price index slowed growth To 0.3% from the previous quarter's reading and expectations at 0.4%.
In the same context, the annual reading of the consumer price index showed that growth slowed to 1.3% from 1.8% in the fourth quarter, worse than analysts' forecasts of a slowdown of 1.5%. The core annual reading of the consumer price index showed growth slowing to 1.6% versus 1.8% In the fourth quarter, also worse than analysts' forecasts of a slowdown of 1.7%.
Technical analysis:
The AUDUSD is trading in negative territory today, targeting the pivotal support level of 0.7044 and moving below it now, which signals the direction of the pair to achieve further bearishness over the coming period, but we need to get a daily close below the mentioned level to confirm the shift towards the downside.
Therefore, we prefer to stop the neutral temporarily until the price confirms the closing of the daily candle for the level of 0.7044, where stability below it will push the price towards 0.6925 as a next negative station, while rising above it again will reactivate the scenario of the upward trend, which is the next main target at 0.7250.
The trading range for today is expected among the support at 0.6950 and the resistance at 0.7100
The expected general trend for today: neutral