Chart: WorldWideMarkets Alpha Trader
The Australian Dollar continued to make extended gains in Europe to test 0.7805 from 0.7760 against the US dollar benefiting from the CPI data in the prior Asian session.
The group of CPI data for Australia was fairly in line with the forecast, however the core was slightly above the median consensus which pushed the Australian Dollar sharply higher on the intial reaction to 0.7755 from 0.7710 (0130 GMT).
Australia 1st QTR CPI +0.2% q/q, +1.3% y/y, trimmed mean +0.6%, weighted median +0.6%
The data also spurred rounds of short covering where few market participants are caught short from the 0.7850 levels and past dovish rhetorics from the RBA and stops at the 0.7730 level.
Resistance at 0.7805 with large option expiry today at 0.7800. The 14-day moving average is supported at 0.7710 and 0.7760. Resistance at 0.7797.