Audusd slightly rises amid market consolidation ahead of US inflation data

AUDUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	0.11%	7.2 Pips
Week to-date	0.59%	38 Pips
June	1.52%	98 Pips

Upcoming key events (London Time)

Wed 01:30 PM USD CPI Inflation Rate (12-mth)
Thu 01:30 PM USD PPI excluding Food and Energy sectors (12-mth)

What happened lately

The economic landscape remains relatively uneventful in terms of major announcements, with no significant news influencing the financial markets. However, market participants eagerly anticipate upcoming economic data releases from the United States, particularly the Consumer Price Index (CPI) inflation rate on Wednesday and the Producer Price Index (PPI) excluding food and energy sectors on Thursday. These metrics are critical indicators of economic health and inflationary pressures within the US economy, likely to steer future monetary policy decisions by the Federal Reserve. Given the high impact rating of these upcoming announcements, traders are closely monitoring them for directional cues and potential impacts on currency markets, including the AUDUSD exchange rate.

In the currency markets, the AUDUSD pair exhibited a modest increase on Tuesday, advancing by 0.11% to reach 0.65222. This movement indicates a consolidation phase, characterized by limited volatility and potential market indecision ahead of significant economic disclosures. The AUDUSD’s response to the forthcoming US inflation data will likely hinge on whether these figures align with, exceed, or fall below market expectations. Should the inflation data reveal higher-than-anticipated numbers, this could bolster the US dollar, as heightened inflation may prompt the Federal Reserve to consider further monetary tightening. Conversely, weaker inflation data might lead to a depreciation of the US dollar, benefitting the Australian dollar in the short term.

Latest from X (Twitter)

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What can we expect from AUDUSD today?

AUDUSD on Tuesday rose 0.11% to 0.65222. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for AUDUSD looks mixed as the pair is likely to consolidate above 0.64968 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.65331 or trades above daily pivot 0.65149. Break above could target R1 at 0.65404. While to the downside, we are looking at 0.64968 (S1) and daily low of 0.64895 as support levels. AUDUSD need to break on either side to indicate a short-term bias. A break above 0.65331 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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