Global macro overview for 26/04/2017:
The Australian Consumer Price Index data for the first quarter of 2017 fell below expectations at 0.5% q/q (threshold was 0.6% q/q). It pulled down Australian Dollar as the market expected a better data after a positive surprise in a similar New Zealand report last week. This worse-than-expected data might suggest that the Reserve Bank of Australia will not hike the interest rates in the short term as the inflationary pressures are still relatively weak.
Let's now take a look at the AUD/USD technical picture at the daily timeframe. After a fake breakout above the golden trend line the price has got back to the trading range and after the recent news, the price is trading close to the important daily technical support zone between the levels of 0.7490 - 0.7473. Despite the fact that the market conditions still look more oversold than neutral, there is a high chance that this level will be tested soon. Moreover, in a case of a breakout below this zone, the next support is seen at the level of 50% Fibo at 0.7453 and then at the level of 61%Fibo at the level of 0.7384.
