Aussie dollar traders are preparing for an increase in volatility in the currency this morning with the release of the quarterly CPI data due out early in the trading day. The RBA is monitoring this data closely and traders are expecting to see some significant moves after the print. Expectations are for the quarterly numbers to show an increase of 0.8% for both the headline number and the trimmed mean in Q1 with the yearly number coming in at 3.4%. Any significant deviation from those expectations will see big moves in the currency and even an on-expectation print should see some flow as longer-term players look to establish fresh positions. The Aussie moved higher again yesterday in the course of trading as risk appetite returned to the market and the US dollar dropped on weaker data. It is now poised mid-range which gives it scope to move well either side after the data comes out. Short-term support now lies near last week’s yearly low at 0.6360 with initial resistance expected around 0.6550, the high on April 11.
Resistance 2: 0.6612 – Hourly Trendline Resistance
Resistance 1: 0.6552 – April 11 High
Support 1: 0.6360 – 2024 Low
Support 2: 0.6255 – 2023 Low
