The Australian dollar dipped below 0.74 handle after another failure at strong 0.7440 zone, which marked the sixth consecutive upside rejection.
The pair briefly touched new two-week high at 0.7448, but gains were short-lived, confirming the strength of resistance.
Australian inflation data missed forecasts in Q2 (headline q/q CPI rose 0.4% vs 0.5% f/c, while annual figure was up 2.1% VS 2.2% f/c).
Subdued inflation suggests the RBA would stay on record low cash rate at 1.5% for the third straight year.
Policymakers expect inflation to rise gradually towards central bank’s 2-3% target, as weak labor sector is seen as one of main obstacles for economy growth.
The Aussie showed little benefit from bullish signal on Tuesday’s bullish outside day, remaining congested within 0.7360/0.7440 range for the third day, despite CPI data which were expected to be a catalyst.
Mixed signals from daily techs (cluster of converged daily MA’s still holds but momentum and slow stochastic are negatively aligned) lacks clearer direction signal for now
Res: 0.7404, 0.7431, 0.7448, 0.7474
Sup: 0.7391, 0.7359, 0.7343, 0.7317
