FxWirePro: AUD/USD softens despite Australian April CPI beating forecasts

•   AUD/USD slipped on Wednesday as a stronger US dollar offset better-than-expected Australian inflation figures.

• Data showed, Australian consumer inflation remained steady in April, with rising health and holiday expenses offsetting lower petrol prices. Despite monthly volatility, hopes for further interest rate cuts largely remain intact..

•  Data from the Australian Bureau of Statistics showed the annual consumer price index (CPI) rose 2.4% in April, matching March’s figure and slightly exceeding the median forecast of 2.3%.

• The data may disappoint the Reserve Bank of Australia, which last week cut rates by 25 basis points to 3.85%, relying on the expectation that inflation would keep easing.

• At GMT 05:10, the Australian dollar was down 0.18% to 0.6430 against the   dollar.

•  Immediate resistance is located at 0.6499(38.2%fib), any close above will push the pair towards 0.6538(May 26th high).

•  Support is seen at 0.6391(50%fib) and break below could take the pair towards 0.6352(Lower BB).

 Recommendation: Good to buy around 0.6395 with stop loss of 0.6320  and target price of 0.6490