Audusd rises amid upcoming key economic events in US and Australia

AUDUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.11%	7 Pips
Week to-date	0.48%	31 Pips
June	0.78%	50 Pips

Upcoming key events (London Time)

Tue 03:00 PM USD Federal Reserve Chair Jerome Powell testifies
Wed 02:30 AM AUD Monthly CPI Indicator (12-mth)

What happened lately

In the United States, the anticipation builds around Tuesday’s event where Federal Reserve Chair Jerome Powell will testify. This is a high-impact event that investors are closely monitoring, as any comments or guidance on future monetary policy could significantly influence market sentiment and economic expectations. Powell’s testimony could provide insights into the Federal Reserve’s stance on interest rates, inflation, and economic growth, potentially affecting global markets, including the foreign exchange market.

In Australia, all eyes are on the upcoming release of the Monthly Consumer Price Index (CPI) Indicator. Scheduled for Wednesday, this high-impact economic event offers critical insights into inflation trends within the country. The CPI is a vital economic indicator, reflecting price changes in a basket of goods and services, thus functioning as a measure of inflation. The data’s release is crucial as it may influence future monetary policy decisions by the Reserve Bank of Australia (RBA). Strong or weak inflation figures could impact market expectations and the Australian dollar’s strength against other currencies.

Regarding the AUDUSD currency pair, the recent marginal increase of 0.11% to 0.64570 indicates a period of consolidation, suggesting that neither bulls nor bears are currently in control. The upcoming events in both countries are likely to affect the pair’s future movement significantly. Jerome Powell’s testimony might provide clues about the US Federal Reserve’s interest rate trajectory, which could strengthen or weaken the US dollar, thus impacting AUDUSD. Meanwhile, Australia’s CPI data will shed light on the inflationary pressures in the local economy, possibly influencing RBA’s monetary policy outlook. A higher than expected inflation rate might bolster the Australian dollar if it leads to speculation for interest rate hikes. Conversely, disappointing CPI data could weigh on the AUD, potentially lowering AUDUSD. These events will likely bring volatility to the pair, and traders will keenly analyze both Powell’s remarks and the CPI figures for any potential shifts in economic policy directions.

Latest from X (Twitter)

Tweets by Australian Bureau of Statistics

What can we expect from AUDUSD today?

AUDUSD on Monday rose 0.11% to 0.64570. 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 0.63982 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.64633 or trades above daily pivot 0.64308. Break above could target R1 at 0.64895. While to the downside, we are looking at 0.63982 (S1) and daily low of 0.63720 as support levels. AUDUSD need to break on either side to indicate a short-term bias. A break above 0.64633 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:

#AUDUSD Trending on Twitter

[custom-twitter-feeds hashtag=”#AUDUSD” num=3 showheader=false]