In the Asia session on Wednesday, prices tumbled to their lowest level since February 11 at $1,831, as investors monitor comments from many U.S. Federal Reserve speakers and await the release of the key April consumer price index report, which is expected to show that inflation may have peaked, which could temporarily soothe global markets if confirmed.
The U.S. Bureau of Labor Statistics will release the April Consumer Price Index (CPI) data on Wednesday, May 11 at 10:30 pm Sydney time.
According to forecasts, the (U.S. CPI) report is expected to show headline inflation rose 0.2% in April, while the forecast is at 8.1% year-over-year.
That compares with a whopping 1.2% increase in March, or an 8.5% gain year-over-year.
The Core U.S. CPI is expected to rise 0.4% or 6% year over year, which compares with 0.3% in March or 6.5% on an annualised basis.
Based on the technical assessment, the Relative Strength Index (RSI) indicator, 3-daily ‘lookback’ is negative, although it has rebounded, while the Moving Average Convergence Divergence (MACD) supports a negative signal.
With the $1,848-52 support crushed now exposes the region of $1,820-26. Reassess from there.