The Aussie dollar eased in early Wednesday’s trading after inflation in Australia missed its forecasts in the second quarter (Q2 CPI 0.2% q/q vs 0.4% f/c, annualized at 1.9% vs 2.2% f/c) but dips were contained just above last Friday’s low at 0.7875.
Rising thick 4-hr cloud also underpins the action, as probes below cloud top (0.7902) were so far short-lived.
Immediate downside risk will be minimized while supports at 0.7900/0.7875 hold, while break lower would risk extension towards 0.7856 (rising daily Tenkan-sen) and pivotal support at 0.7830 (Fibo 38.2% of 0.7527/0.7988 upleg).
Firm break here is needed to sideline larger bulls and signal deeper correction.
Res: 0.7941, 0.7970, 0.7988, 0.8000
Sup: 0.7900, 0.7875, 0.7856, 0.7830