Audusd rises 0.37% amid market consolidation ahead of us inflation data release

AUDUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.37%	24 Pips
Week to-date	0.39%	25 Pips
June	1.32%	85 Pips

Upcoming key events (London Time)

Wed 01:30 PM USD CPI Inflation Rate (12-mth)

What happened lately

Currently, there are no major economic news or developments significantly impacting the financial markets. Economic indicators are typically a key focus for traders, and their absence can lead to markets consolidating or trading within a range. This is the case for the AUDUSD currency pair, which saw a modest increase of 0.37% to 0.65150 on Monday but remains primarily in a consolidation phase. Traders are likely adopting a wait-and-see approach as they assess potential catalysts that could drive market movements.

On the horizon, market participants should take note of the upcoming United States Consumer Price Index (CPI) inflation data release, scheduled for Wednesday at 1:30 PM. This indicator is crucial for gauging inflationary pressures in the U.S. economy and can significantly influence monetary policy decisions made by the Federal Reserve. A higher-than-expected inflation rate could lead to a tightening of monetary policy, thereby affecting the value of the USD relative to other currencies, including the AUD.

In the context of the AUDUSD pair, the absence of major news has meant limited movement, with trading likely to remain range-bound until fresh data provides new insights. The forthcoming U.S. CPI data, due for release, could act as a significant driver of volatility for the AUDUSD pair, especially if it deviates from market expectations. Should the CPI numbers indicate accelerating inflation, it could boost the U.S. dollar on speculation of more aggressive Federal Reserve interest rate hikes, potentially leading to downward pressure on the AUDUSD pair. Conversely, softer inflation figures could weaken the USD, offering support to the AUDUSD pair. Traders will be closely monitoring these developments to adjust their positions accordingly in anticipation of the CPI release.

Latest from X (Twitter)

Tweets by Australian Bureau of Statistics

What can we expect from AUDUSD today?

AUDUSD on Monday rose 0.37% to 0.65150. Price is above 9-Day EMA while Stochastic is falling.

Updated daily direction for AUDUSD looks mixed as the pair is likely to consolidate above 0.64943 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.65340 or trades above daily pivot 0.65141. Break above could target R1 at 0.65349. While to the downside, we are looking at 0.64943 (S1) and daily low of 0.64934 as support levels. AUDUSD need to break on either side to indicate a short-term bias. A break above 0.65340 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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