Aussie started at $0.9394 this morning following a $0.9380 to $0.9423 range during the US hours last night. Early moves were mostly lower with aussie-dollar slipping to a $0.9381 low despite a slightly firmer opening in Japanese stock markets. The main focus this morning was on the Q2 CPI data release but with most economists predicting risks to the downside for the data, aussie-dollar was largely held toward the session lows in the lead-up to the release. The headline CPI came in as expected but the underlying reading was a higher-than-expected +0.8% q/q. The aussie rallied sharply after the data, shooting through $0.9400 though initially stumbling at $0.9428, which marked the 76.4% retracement of the pair’s $0.9459 to $0.9329 move. Rumored sellersappeared and began to chip away at the aussie’s gains above $0.9430 soon after. But aussie bulls were undeterred and aussie-dollar continued up to a $0.9439 high before stalling ahead of strong offers at $0.9450. Aussie-dollar was last at $0.9430. Immediate support still remains at $0.9322/20 while bids remain above that in the $0.9350/40 region.
