Australia CPI data last night came in sufficiently low enough, and as a result it likely that the RBA will cut their target rate by 25 basis points at next weeks policy meeting (Tuesday). At the last meeting the RBA said that as long as CPI data came in low, the central bank would look to ease.
From a technical perspective the price intially fell sharply on the news, but rebounded as the day wore on in the London morning session. The NY session has seen a move back to the downside with the 100 bar MA on the 5 minute chart being tested currently. A break of this moving average will help the sellers cause. The hourly chart shows how the corrective rally today off the lows found resistance against the topside trendline (see chart below). This keeps the bears in charge as long as the price can stay below this line (at 1.0295 currently).
