AUD/USD drops to the 50-4hr SMA on CPI miss

• AUD/USD dumps on CPI headline.
• AUD/USD traders await further catalysts

AUD/USD has dumped on the CPI data with a headline of 0.6% q/q (vs. expected +0.7%). Currently, AUD/USD is trading at 0.8073, down -0.05% on the day, having posted a daily high at 0.8107 and low at 0.8053.

Bulls still in control

Bears have taken the price down to test the 4hr 50 SMA at 0.8048 on the headline but the move has not penetrated the ascending trend line as traders await the next ket catalysts that are, Chine PMIs Trump's SOTU and the Fed. 

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that in the meantime, the pair´s short-term stance is neutral:

"The price keeps hovering around a horizontal 20 SMA, not far from its multi-month high of 0.8135, and with technical indicators turning lower around their mid-lines. The AUD/USD pair needs now to break through 0.8135 to confirm additional gains ahead, aiming then to test the 0.8200 figure."