Australian dollar rose 0.6% in early Wednesday, lifted by higher than expected inflation (May 4.0% vs 3.6% in April and 3.8% f/c), which hit the highest in six months.
Fresh rise in consumer prices adds to RBA’s hawkish stance, with jump in bets for August rate hike making the Aussie dollar more attractive.
Near-term action remains underpinned by rising and thickening daily Ichimoku cloud, Ma’s in bullish setup and 14-d momentum ascending above the centreline.
Fresh bulls probe again through pivotal Fibo barrier at 0.6676 (61.8% of 0.6871/0.6362) where a number of attacks in past three weeks failed and guards key barriers at 0.6691/94 (2024 peaks), break of which to signal continuation of larger uptrend from 0.6362 (2024 low).
Initial supports lay at 0.6646/43 (converging 10/20DMA’s) and 0.6626 (June 26 low) guarding daily cloud top (0.6592).
Res: 0.6694; 0.6714; 0.6728; 0.6750.
Sup: 0.6653; 0.6626; 0.6616; 0.6592.
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