AUD/USD flirts with a wall of resistance for Asian session
|- AUD/USD bulls meet resistance ahead of critical events this week.
- Aussie CPI will be the focus in Asia, so business might be slow leading into Wednesday's event .
AUD/USD was ending the day on Wall Street in the green by near to 0.4% after travelling from a low of 0.7461 to a high of 0.7505 on Monday's business. For Tuesday, the pair kicks off the Asian session up against a wall of weekly, daily and hourly resistance. For the days ahead, the Aussie Consumer Price Index will be a focus for traders for Wednesday.
The US dollar steadied on Monday afternoon after bouncing off a one-month low as traders weighed the prospects of a tighter US monetary policy. The risk events this week are heavy, so investors could be favouring the greenback as investors position for uncertainty. The euro, the Japanese yen and the Swiss franc were taking the brunt of the move into the US dollar. The dollar index against major currencies DXY steadied with a gain of nearly 0.23% for the day by the closing bell on Wall Street.
Meanwhile, there is a number of major events this week for forex. On Thursday, the European Central Bank will meet in US economic data, we have US Gross Domestic Product as well as inflation data from both the Us and across the pond, not to mention the domestic Consumer Price Index today for AUD. On top of this, there is also the Bank of Canada on Wednesday.
Critical events coming up
With respect to the Aussie CPI on Wednesday, analysts at TD Securities explained that ''new dwelling prices are expected to rise sharply as the dampening effect from the HomeBuilder grants fades, while higher fuel and motor vehicle prices will add to higher transport costs.'' Additionally, the analysts said, ''global supply-chain disruptions may also result in broad-based inflationary pressures. If our forecasts are correct, markets could retest the RBA and implies more pain for AU front-end rates.''
AUD/USD weekly resistance
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