AUD CPI Meets Expectations, Bearish Breakout in Focus

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EnclaveFX
Jul 27, 2022
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Australia’s Q2 Consumer Price index released during the early trading session met expectations of market participants who look to anticipate RBA’s next move. The QoQ CPI came in at 1.8% meeting expectations, whereas the YoY Q2 CPI was considerably higher at 6.1%. With inflation being the focus across economies around the globe Central Banks are looking to make moves to prepare for a recession and control prices. Traders post this CPI expect a 75bps rate hike in August

Prior to the data release, AUD/USD pair had formed a W pattern on the daily charts indicating a reversion of trend. The pair was holding on top the key support at the 0.69440 levels (SMA 50). Post the data release, the pair has broken through the SMA 50 and SMA 100 support with prices moving below the Ichimoku Cloud. For placing fresh bets traders based on the H1 chart above, traders will wait for a few candles to open below the support which would then expose the July 25 low of 0.68800.