Audusd increases as markets anticipate key economic data releases from Australia and the US

AUDUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.55%	35 Pips
Week to-date	0.52%	33 Pips
April	2.9%	180.9 Pips

Upcoming key events (London Time)

Wed 02:30 AM AUD CPI Inflation Rate (3-mth)
Wed 02:30 AM AUD Monthly CPI Indicator (12-mth)
Wed 01:30 PM USD PCE Price Index, excluding food and energy (12-mth)
Wed 01:30 PM USD GDP annual rate

What happened lately

Australia is set to release significant economic figures this Wednesday, with the focus on the Consumer Price Index (CPI) Inflation Rate and the Monthly CPI Indicator. These reports are crucial as they provide insights into the country’s inflation trajectory. A higher-than-expected inflation rate could indicate rising consumer prices, potentially prompting the Reserve Bank of Australia (RBA) to consider adjustments in monetary policy. Investors and economists closely analyze these indicators to gauge the potential impact on interest rates and the broader Australian economy. If inflation shows signs of acceleration, it might signal the beginning of more stringent fiscal policies in an attempt to curb inflationary pressures.

Meanwhile, the United States will also release crucial data on the same day, namely the PCE Price Index, excluding food and energy, as well as the Gross Domestic Product (GDP) annual rate. These economic indicators provide a detailed overview of the inflationary pressures within the economy and the overall economic growth, respectively. The PCE Price Index is particularly significant, as it is the Federal Reserve’s preferred measure of inflation. A higher result could indicate rising costs for consumers and could influence the Federal Reserve’s decisions regarding interest rates. Additionally, the GDP data will offer insights into the economic growth of the US, which could affect market sentiments significantly.

As for the AUDUSD, the pair rose by 0.55% to 0.64280 on Monday. This increase shows a strengthening of the Australian dollar against the US dollar, potentially reflecting optimistic sentiment or anticipations regarding the upcoming Australian economic data. If the Australian CPI data comes in higher than expected, it could further boost the AUD, possibly leading to a stronger performance against the USD. Conversely, if the US economic reports indicate robust economic growth or higher inflation, the USD might strengthen, leading to a potential reversal in the AUDUSD trend. Market participants will be particularly attentive to these upcoming releases, as they could set the tone for short-term movements in the currency pair.

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What can we expect from AUDUSD today?

AUDUSD on Monday rose 0.55% to 0.64280. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for AUDUSD looks bullish as the pair ended higher after Monday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 0.64529 with break above could target R2 at 0.64777 or figure level area. While towards the downside, we are looking at daily low of 0.63674 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.64350 may suggest continuation after recent positive movement.

For the week to-date, take note that AUDUSD is mixed as compared to the prior week.

Key levels to watch out:

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