The pair opened in Sydney at $0.7940, precisely in the middle of the range seen in the previous 24 hours ($0.7905 to $0.7975). The early focus was on Australian Q4 CPI data although the surprise Singapore central bank easing provided the initial excitement, pushing aussie-dollar to a $0.7901 low. The Q$ CPI data showed underlying inflation – the most important number watched by the market and the Reserve Bank – was more than expected and was likely to cool market expectations for a near-term cash-rate cut. Aussie-dollar jumped to $0.7982 in an initial knee-jerk reaction and then clawed higher after that, as it pushed through rumored sellers at $0.8000. It got up to $0.8010 a few minutes later before then backing off again. Aussie-dollar was last at $0.7998. Sell orders are still noted above the psychological $0.8000 and $0.8023 marks the 38.2% Fibonacci retracement of the $0.8295 to $0.7855 fall. Support lies at $0.7855 (26 Jan low) with demand then noted at $0.7900 from domestic exporters
