A strong US Dollar (USD) sent the Australian Dollar (AUD) packing off Monday’s open from 0.7250 falling to 0.7100 in early Wednesday sessions, suffering a double whammy of poor sentiment and yield differentials. The Aussie attempted to recover earlier setbacks bouncing higher to 0.7190 on improved risk and the hot inflation read but since drifted back to lows around 0.7120 this morning. Inflation came in at 5.1% year on year and 1.4% for Q1 as supply chain woes, energy, and housing costs balloon. This should signal the RBA to hike off 0.10% at next week’s meeting and probably again in June. US “advance” GDP prints tomorrow with expectations of growth in the first quarter 2022 predicted to be around 1.1% from the monster rise in December (4th Q) of 6.9% with slower inventory growth. Major support on the chart is 0.7000 the big figure, we are unsure if this will hold, certainly a drop below 0.6960 could signal further declines fending off the July 2020 low.
Current Level: 0.7113
Resistance: 0.7280
Support: 0.7100
Last Weeks Range: 0.7233-0.7455