Audusd rises as economic indicators influence currency movements

AUDUSD Analysis

Performance after Wednesday
Period	Pct	Chg	Momentum
Wednesday	0.28%	18.1 Pips
Week to-date	1.07%	69 Pips
June	1.37%	88 Pips

Upcoming key events (London Time)

Thu 01:30 PM USD GDP annual rate
Fri 01:30 PM USD PCE Price Index, excluding food and energy (12-mth)

What happened lately

The United States reported a significant decrease in new-home sales for May 2025, marking a decline of 13.7% after an increase of 10.9% in April. This drop indicates a potential cooling in the housing market, possibly due to higher interest rates or economic uncertainties impacting buyer confidence. Additionally, the U.S. House Price Index for April 2025 also showed a decline, with a decrease to -0.4% from -0.1% in March. This trend suggests a weakening in the real estate market, posing concerns for a segment of economic stability that affects consumer wealth and financial conditions.

In Australia, the Consumer Price Index (CPI) Indicator for May 2025 showed a decrease to 2.1% from 2.4% in April. This moderation in inflation could ease policy pressures on the Reserve Bank of Australia to raise interest rates, potentially favoring economic growth and consumer spending. A lower inflation rate suggests that price pressures are abating, which may influence the central bank’s future monetary policy decisions positively toward economic stability without aggressive rate hikes.

Given these economic developments, AUDUSD experienced a rise by 0.28% to 0.65064, reflecting the currency pair’s consolidation phase. The weaker U.S. housing data could weigh on the U.S. dollar due to anticipated slower economic growth, thereby providing some support for the Australian dollar. Furthermore, the upcoming high-impact events, including the U.S. GDP annual rate and the PCE Price Index, excluding food and energy, could further impact the USD if they reflect economic weakening or unexpected inflationary pressures. As market participants anticipate these data points, the AUD might experience volatility, however, with some resilience given the current economic dynamics. The interplay between U.S. economic data and Australia’s inflation trajectory continues to shape the outlook for AUDUSD.

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What can we expect from AUDUSD today?

AUDUSD on Wednesday rose 0.28% to 0.65064. 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 0.64885 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.65151 or trades above daily pivot 0.65018. Break above could target R1 at 0.65197. While to the downside, we are looking at 0.64885 (S1) and daily low of 0.64839 as support levels. AUDUSD need to break on either side to indicate a short-term bias. A break above 0.65151 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

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