AUD/USD Price Analysis: Retreats from daily tops around 0.7390s towards 0.7330s
|- After the US CPI report, the AUD/USD seesawed around the 0.7320-0.7392 range during the day.
- US CPI increased the most since 1990, topping 6.2%.
- AUD/USD Technical outlook: DMA’s above the spot price and the RSI indicate a downward bias in the near term.
The Australian dollar slides during the New York session, down 0.64%, trading at 0.7334 at the time of writing. Earlier in the Asian Pacific session, the pair edged slightly lower, around the 0.7350 area, in choppy trading conditions, sideways. When US inflation figures crossed the wires, the AUD/USD fluctuated around the 0.7339-92 range.
US CPI increased the most since 1990, topping 6.2%
The Labour Department reported on Wednesday that the US Consumer Price Index (CPI) for October increased by 6.2%, on annual base numbers, higher than the 5.3% foreseen by analysts. Additionally, unveiled that the Core CPI that excludes energy and food volatile items increased by 4.6% for the same period, more than the 4.3% estimated by economists.
According to the report, prices in energy, shelter, food, and vehicles triggered the spike in the CPI. Also, inflation is broadening beyond areas associated with a reopening.
AUD/USD Price Forecast: Technical outlook
Daily chart
At press time, after the flurry of US CPI, the AUD/USD settled around the 0.7330 area. The daily moving averages (DMA’s) reside above the spot price, confirming in the near-term a downward bias, acting as resistance levels.
Also, the Relative Strength Index (RSI) at 39, below the 50-central line and with enough room before reaching oversold levels, adds another signal to the bearish bias.
To accelerate the downtrend, AUD/USD sellers will need a break below the September 24 high at 0.7316. In that outcome, the pair could travel south towards the October 6 low at 0.7225.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.