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Forex - AUD/USD rises after Australian CPI report

Published 04/22/2015, 02:48 AM
Aussie gains ground vs. greenback, Australian data supports
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EUR/AUD
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Investing.com - The Australian dollar rose against its U.S. counterpart on Wednesday, after data showed that Australian consumer prices rose in line with expectations in the first quarter of 2015 and as demand for the greenback broadly weakened.

AUD/USD hit 0.7778 during late Asian trade, the pair's highest since April 20; the pair subsequently consolidated at 0.7781, advancing 0.92%.

The pair was likely to find support at 0.7680, Tuesday's low and resistance at 0.7846, the high of April 20.

In a report, the Australian Bureau of Statistics said that consumer prices rose 0.2% in the first quarter, in line with expectations and after a 0.2% uptick in the three months to December.

Year-on-year, Australian consumer prices rose 1.3% in the three months to March, in line with market expectations and after an increase of 1.7% in the last quarter of 2014.

A separate report showed that Australia's trimmed mean consumer price index, which excludes the most volatile 30% of items, rose at an annualized rate of 2.3% in the first quarter, exceeding expectations for a 2.2% increase.

Meanwhile, sentiment on the greenback remained vulnerable as investors pushed back expectations for higher U.S. interest rates after a recent string of soft economic data dampened optimism on the country's recovery.

The Aussie was also higher against the euro, with EUR/AUD declining 0.68% to 1.3831.

Later in the day, the U.S. was to release data on existing home sales.

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