The Aussie plummeted early Asia, following the release of much weaker-than-expected Australian inflation readings for the first quarter of this 2016. The consumer price index fell by 0.2% in the three months to March, whilst the YoY reading resulted at 1.3%, well below the previous 1.7% and the 1.8% expected. The AUD/USD pair plummeted to the 0.7600 region, extending its decline down to 0.7586 early London session. Holding around the 0.7600 figure, the 23.6% retracement of this year rally, the 1 hour chart shows that the technical indicators are beginning to look exhausted towards the downside, but not yet able to confirm a steeper upward corrective move. In the 4 hours chart, the price is well below a bearish 20 SMA, the technical indicators have partially lost their bearish potential within oversold levels, and the price hovers around its 200 EMA, all of which supports additional declines on a break below the mentioned daily low.
Support levels: 0.7580 0.7545 0.7500
Resistance levels: 0.7620 0.7660 0.7695