AUD/USD offered at 200-DMA on weaker Aussie CPI release

AUD/USD was offered at the 200-DMA level of 0.7553 after the first quarter consumer price index (CPI) missed estimates.

The currency pair dropped to a low of 0.7518 in a knee jerk reaction. An upbeat trimmed mean CPI did trigger a partial recovery to 0.7530; which quickly fizzled out.

RBA ‘trimmed mean’ CPI beats estimates

The losses are being capped at 0.7518 largely due to RBA trimmed mean CPI, which printed at 1.9% y/y, beating the estimated rise to 1.8% from 1.6%. The trimmed mean rose to 0.5% y/y as expected.

The CPI remained unchanged at 0.5% q/q as opposed to the expected rise to 0.6%. That triggered the drop in the AUD/USD from the 200-DMA resistance.

Despite the miss on the CPI figure, the 10-year Aussie bond yield holds at 2.66%; the highest in April 3. However, the resilience in the yield is largely in line with its global peers. The US 10-year yield sits at 2.33%; the highest level in more than two-weeks.

AUD/USD Technical Levels

A break below 0.7491 (Mar 9 low) would open doors for a sell-off to 0.7417 (Dec 7 low) and 0.74 (zero figure). On the higher side, only a daily close above 0.7553 (200-DMA) would open up upside towards     0.7604 (50-DMA) and 0.7679 (Mar 30 high).