FxWirePro: AUD/USD downside pressure builds, key support level in focus

• AUD/USD dipped  on Thursday as soft consumer spending data added to the case against a further rise in domestic interest rates.

• Australian data showed household spending fell 1.1% in April as consumers cut back on travel, clothing, and food amid weaker confidence from Middle East conflict concerns..

  • Wednesday’s weaker-than-expected CPI data strengthened expectations that the Reserve Bank of Australia can keep rates unchanged for now.

• The report outweighed data showing business investment jumped 6.5% in Q1 due to strong demand for data equipment, much of which was imported.

• Markets now imply almost no chance of a June move, while the probability of an August hike has more than halved to 40%.

•  Immediate resistance is located at 0.7141 (Daily high), any close above will push the pair towards 0.7177(38.2%fib).

•  Support is seen at 0.7090(50%fib) and break below could take the pair towards 0.7067(Lower BB).

 Recommendation: Good to sell  around 0.7130 with stop loss of 0.7200 and target price of 0.7040