Australia’s CPI data for the quarter will be released as part of new trading day rotations, with it moving down to 1.0% from 1.4% last quarter. The year-on-year level of the CPI still remains comfortably above the inflation targets (5.4%).

Technically, the AUDUSD price rebounded today after testing its 200-day moving average yesterday and today. This moving average is currently 0.6720.

The bounce up has moved the price between its 100-hour moving average currently at 0.67649 and the 200-hour moving average up at 0.67972 (call it 0.6800).

Both of these levels will be barometers for both buyers and sellers through CPI data.

• If the inflation data is higher than expected, look for a break of the 200-hour moving average and a move towards the 61.8% retracement of 0.68256, followed by a swing area between 0.6838 and 0.6840.
• Conversely, a lower-than-expected number would prompt traders to push the price back below its 100-hour moving average at 0.67649. Breaking below this level using momentum and retesting the 200-day moving average at 0.6720 would be the path of least resistance. Below that, the 100-day moving average target would be 0.66884.

For now, with prices between the 200-hour moving average above and the 100-hour moving average below, the trading bias is neutral and waiting for another push.