Forex: AUD/USD rises to session highs after CPI in US

FXstreet.com (Barcelona) - The AUD/USD has moved higher Tuesday, having pared some of yesterday’s grisly losses. During the onset of American trading Tuesday, the cross is now settling at 1.0378/80, up a steadfast +0.63% after US economic data.

According to the ICN.com Analyst Team, “The AUD/USD's plunge on Monday stopped at 1.0300 and rebounded upside, and it now heads toward retesting the uptrend's support – earlier broken and converted into resistance around 1.0415. The chances of touching the aforesaid level are likely however, we believe the pair may drop back again afterwards to continue the downside trend it has started from top around 1.0583.”

In the United States, Consumer Price Index (YoY and MoM) came in at +1.5% in March (against expectations of +1.7%) and -0.2% in March (vs. projections of +0.1%). Finally, Consumer Price Index ex Food & Energy (YoY) yielded a growth of +1.9% in March, compared to estimates of +2.0%.

“The AUD/USD remains neutral today, despite the sharp sell-off on Monday tested support at 1.0293, a closing break below this would be negative, exposing 1.0202. Resistance is at 1.0402 and 1.0471.” notes the Research Analyst Gareth Berry at UBS.