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Australian CPI beats forecasts, but AUD/USD slips near 0.7170

Australia's July CPI rose 1.0% versus an 0.8% forecast and lifted annual inflation to 3.5%, while firmer US PCE kept pressure on the Aussie currency.

Reported · Written up by our desk · Major Pairs

AUD/USD traded around 0.7170 on Wednesday, edging lower after a hotter-than-expected Australian inflation print collided with a firmer US dollar, FXStreet reports.

Australia's monthly Consumer Price Index climbed 1.0% in July, above the 0.8% forecast, taking the annual rate to 3.5%. The Reserve Bank of Australia's trimmed mean measure rose 0.5% on the month and held at 3.6% year over year, above the 3.5% forecast.

The US dollar found support from US inflation data, with annual Personal Consumption Expenditure inflation at 3.7%, above 3.6% consensus, and core PCE at 3.3% as expected, according to FXStreet.

FXStreet also noted technical factors: on the 4-hour chart, AUD/USD held above the 20-period simple moving average at 0.7164 and the 100-period SMA near 0.7090, with resistance seen near 0.7175 and 0.7188, and support clustered around 0.7168 and 0.7160.

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