Audusd which was a bit of a touch and go

Australian inflation printed markedly cooler than expectations sending Aussie lower in Asian session trade. On a quarterly basis Australian CPI came in at 0.1% versus 0.7% forecast while Trimmed mean CPI was 0.3% versus 0.6% anticipated. On a yearly basis the trimmed-mean inflation rate dropped to 2.2% from 2.6% and the weighted-median rate fell to 2.1% from 2.5%.

The substantial reduction in the rate of inflation was driven by lower food and travel costs while energy, education and pharmaceutical costs continued to rise. Overall the sharp reduction in the yearly rate of inflation of 40 basis points suggests that a rate cut from the RBA is nearly assured at the next meeting in May. Presently the market is pricing nearly 100bp in rate cuts from the RBA by year end which would significantly reduce Aussie’s interest rate advantage in the G10 universe.

The AUD/USD fell to a session low of 1.0247 in morning Asian trade but managed to stay above the yearly lows of 1.0225 rebounding to 1.0290 in early European dealing. For the time being the market appears to have priced in the immediate 25bp rate cut and the pair could rally towards the 1.0300 level if risk flows turn positive for the rest of the day. However, the longer term picture for Aussie remains quite negative as the pair continues to lose its attraction on the carry trade basis with every new reduction in the benchmark rate. A test of yearly lows at 1.0225 could open the way for a move towards parity over the intermediate term horizon. fx360 news

Follow up on the Audusd which was a bit of a touch and go and formed a head and shoulders on the hrly time Frame

i Managed to keep my long order @1.0329 now @ break even

lets wait and see what happens