• AUD/USD steadied on Monday as investors focus turned to Australian CPI data and election outcome
• Australia is set to release quarterly inflation data on Wednesday, which could solidify the case for a rate cut in May.
• Analysts expect a 0.8% rise in CPI for the quarter, lowering annual inflation to 2.3%, while core inflation is seen up 0.7%, bringing the annual rate down to 2.9% — back within the RBA’s target range for the first time since late 2021.
• Australia’s election campaign enters its final stretch ahead of the May 3 vote, with PM Anthony Albanese leading polls and ramping up cost-of-living relief.
• At GMT 06:07, the Australian dollar was trading higher 0. 08% at 0.6400 against US dollar.
• Immediate resistance is located at 0.6430 (38. 2%fib), any close above will push the pair towards 0.6471 (9th Dec high).
• Support is seen at 0.6378 (SMA11) and break below could take the pair towards 0.6331 (50%fib).
Recommendation: Good to buy around 0.6400 with stop loss of 0.6360 and target price of 0.6480
