AUD/USD Current Price: 0.6662
- The United States CPI was broadly in line with expectations in August.
- Australia will release September Consumer Inflation Expectations on Thursday.
- AUD/USD recovers from intraday lows, is still at risk of falling.
The AUD/USD pair spent the first half of the day consolidating near 0.6640, the weekly low, amid the absence of relevant data. The US Dollar shed some ground amid Japanese Yen (JPY) strength, which surged to a fresh 2024 high against its American rival, yet Aussie gains were limited by comments from Reserve Bank of Australia (RBA) Assistant Governor Sarah Hunter. Hunter said the officials have been surprised by the “limited” easing this year in some key employment indicators, noting the labor market is still “tight relative to full employment.” Her words aligned with the RBA’s hawkish stance, with no rate cuts in sight in the Asian country.
AUD/USD finally broke lower following the release of the United States (US) Consumer Price Index (CPI), as the figures diluted hopes for a Federal Reserve (Fed) 50 basis points (bps) rate cut when the central bank met next week. CPI figures were broadly in line with expectations, yet the annual core CPI rose by 0.3%, surpassing the expected and previous 0.2%. Financial markets turned risk-averse, and AUD/USD fell to a fresh September low of 0.6621 as Wall Street plunged.
Nevertheless, the pair managed to trim losses as US indexes bounced and heads into the Asian opening, trading above the 0.6650 mark. This Thursday, Australia will release September Consumer Inflation Expectations, previously at 4.5%. Later in the day, the US will publish Initial Jobless Claims for the week ended September 6 and the August Producer Price Index (PPI).
AUD/USD short-term technical outlook
From a technical point of view, the AUD/USD pair is still at risk of falling. The pair posted a lower low and a lower high on a daily basis, while the same chart shows the pair has flirted with a flat 200 Simple Moving Average (SMA). At the same time, the pair has fallen far below its 20 SMA, a sign that bears retain control. Finally, technical indicators have lost their directional strength but consolidate within negative levels. The bearish case could be dismissed on a steady recovery above the 0.6710 price zone.
In the near term, and according to the 4-hour chart, AUD/USD offers a neutral-to-bearish stance. The pair barely holds above a flat 200 SMA while a bearish 20 SMA limits advances a handful of pips above the longer one. Should the 20 SMA extend its slide, the risk of a downward extension would increase. At the same time, technical indicators have turned flat. The Momentum indicator hovers around its 100 line, while the Relative Strength Index (RSI) indicator consolidates around 42, which skews the risk to the downside.
Support levels: 0.6620 0.6590 0.6550
Resistance levels: 0.6675 0.6710 0.6745
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AUD/USD: Further weakness remains in the pipeline
AUD/USD resumed its decline and slipped back to the 0.6360-0.6350 band, or monthly troughs, on the back of the strong resumption of the bid bias around the Greenback, which was reignited following the US-China trade talks over the weekend.
USD/JPY surges as risk-on sentiment weighs on safe-haven Yen
USD/JPY is trading near 148.00 as risk-on sentiment dominates global markets following a significant breakthrough in US-China trade relations. This temporary de-escalation has sparked a rally in risky assets, weighing on traditional safe-haven currencies like the Japanese Yen.
Gold: Gains appear limited near $3,250
Gold began the week under pressure, retreating toward the $3,200 mark per troy ounce, where some support appeared to materialise. The decline followed a broader improvement in risk sentiment after encouraging developments emerged from US-China trade talks over the weekend.
SEC Chair Paul Atkins reaffirms crypto as top priority under his administration
The Securities & Exchange Commission Chair Paul Atkins spoke at the Crypto Task Force roundtable on Monday, revealing his administration's agenda to treat crypto regulations as a top priority, with a focus on token issuance, custody and trading.
Memecoins on the move: WIF, BOME, and FLOKI post double-digit gains as US-China agree on tariff reduction
Dogwifhat, Book of Meme, and FLOKI extend their double-digit rallies on Monday, adding to last week’s surge. The rally is driven by growing risk-on sentiment in crypto markets after the US and China agreed to major tariff reductions.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.