AUD/USD analysis: Australian inflation up next

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7647

The AUD/USD pair advanced, with the Aussie finding support in a strong rally in base metals, as spot gold surged to its highest in three weeks, whilst copper jumped over 2% intraday. Australian Q3 inflation will be released during the upcoming Asian session, and the RBA has underlined the importance of this report ahead of the November 1st economic policy meeting, as lower inflation during the first half of the year was the main reason behind the latest rate cut. A weaker-than-expected outcome may fueled speculation of another rate cut in Australia, resulting in a sharp decline in the pair. Inflation is expected to have remained stable in the Q3, at 0.4%, while on a year-on-year reading, it's expected to have remained at 1.7%. Short term, the intraday upward momentum has begun to fade, but the downside seems limited, as in the 1 hour chart, the price is holding above a bullish 20 SMA, but technical indicators are retreating within positive territory. In the 4 hours chart, the price is well above a now flat 20 SMA, while technical indicators maintain strong upward slopes within bullish territory, supporting a new leg higher should the pair break above 0.7660, the immediate resistance.

Support levels: 0.7625 0.7590 0.7550

Resistance levels: 0.7660 0.7700 0.7735

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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