US CPI release Friday sent the Australian Dollar (AUD) off 0.6780 back to 0.6700 levels where the cross closed for the week. US Inflation has shrank from 9.1% in June 2022 to 4.8% y/y with energy prices taking the heavy load with falling prices back to pre-Ukraine invasion times. Inflation however is not coming down as fast as analysts would like with forecasts now of rate cuts by the Fed before year end. Chances of a hike in May is still 50/50 with another 25 points in June predicted, this should keep the greenback buoyant for a while. This morning we see 0.6700 levels holding with no major data publishing over the rest of the week. The Aussie may continue to ease lower.
Current Level: 0.6700
Resistance: 0.6780
Support: 0.6620
Last Weeks Range: 0.6617-0.6804