It’s been a rough week on the data front for the AUD/USD. Earlier in the week, Aussie CPI was released and it was a little weak. We had the QoQ at 0.4% vs 0.5% and the annual rate at 2.1% vs 2.2% expected.
This morning we ran into PPI which showed another miss, coming in at 0.3% QoQ vs 0.4% expected. The Producer Price Index (PPI) measures the change in the price of goods sold by manufacturers.
It’s actually one of the key measures of inflation and holds a fair bit of weight.
The disappointing data comes on the back of another rough night for the AUD/USD. Which at the close of trade yesterday was the weakest performer.
Aussie Outlook
The Aussie tried its best to run into major resistance at 0.7500 but once again it failed. For the last two days, I have been suggesting selling on pops above 0.7450. In hindsight that seems like it was a good plan.
As the AUD/USD has fallen sharply from those levels and is now back 0.7383 or thereabouts.
I’m targeting a move below 0.7350 and even perhaps a dive below 0.7300.
A lot depends on tonights USD GDP figure, which is looking like it will be a cracker of a number. So much so that the President has been weighing in.
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