The AUD/USD might have been strong in the US session, but today’s CPI print is sure to disappoint.

CPI came in at 0.4% vs 0.5% expected for the quarter, while the yearly figure was at 1.9% which was in line with expectations.

There was a level of concern around inflation coming into the number, with analysts suggesting that we would be in for a worse result than many had thought. Sure enough, that seems to be the case here.

This number adds more fuel to the dove’s case for no rate hikes in the near future form the RBA.

Aussie Outlook

The AUD/USD is trading between the major level at 0.7000 to the downside and 0.7100.

0.7100 has been holding us down and that will likely hold today given the news. Price is slightly off early in Asian trade, down 0.3% so far.

I’m still looking for a move to the lows at 0.7000 and a crack of the 0.7025 level. This might just be the catalyst we need to see further downside.

Particularly if the USD can breakout to the upside. As the DXY is sitting right on resistance at the moment.