AUD/NZD Bulls Need a Hot Inflation SurpriseAustralian Dollar / New Zealand DollarFOREXCOM:AUDNZDFOREXcomMonday's bearish key reversal candle after rejection at a resistance zone comprising the 50 and 100-day simple moving averages and 1.2115 warns the corrective bounce may already be running out of steam. For now, the price is hovering just beneath support at 1.2053, a level that has repeatedly acted as both support and resistance in recent weeks, making it an ideal reference point for trade setups depending on how the inflation report lands. Markets expect quarterly trimmed mean inflation to print at 0.9%. Anything below that would likely weigh on the Australian dollar as traders pare back expectations of another RBA rate hike. Conversely, a print of 1.0% or higher would likely see August rate hike expectations ramp up, supporting further upside in AUD/NZD. Should trimmed mean inflation come in below 0.9% and the price break convincingly beneath 1.2053, shorts could be considered with a tight stop back above the level for protection. Initial downside targets are 1.1935, where the price bottomed earlier this month and also found support in March. Conversely, if trimmed mean inflation prints at 1.0% or higher and 1.2053 continues to hold, longs could be considered with a tight stop beneath support, targeting a retest of the resistance zone comprising 1.2115 and the 50- and 100-day simple moving averages. The oscillators marginally favour selling into strength and downside breaks, but the signal is far from definitive, placing even greater importance on the inflation report in determining the next meaningful move. Good luck! DS