AUD/USD Forecast: Slightly bullish, limited while below 0.6440
AUD/USD Current Price: 0.6422
- Market remains relatively quiet, awaiting US CPI.
- The US Dollar Index holds near monthly highs.
- The AUD/USD is moving sideways with a mildly bullish bias.
The AUD/USD experienced a slight pullback on Tuesday and traded sideways around 0.6420 throughout the day in quiet market conditions. The pair reached a low of 0.6408 but quickly rebounded to the 0.6420 area.
The AUD/USD remained relatively quiet within a narrow range as market participants awaited the release of US consumer inflation figures on Wednesday. The Consumer Price Index (CPI) is expected to show an increase in the annual rate from 3.2% to 3.6% and a decrease in the Core rate from 4.7% to 4.3%. The market is currently in a wait-and-see mode for these numbers.
No major reports are scheduled in Australia on Wednesday, with the next significant data being employment figures on Thursday. Despite the improved market sentiment, the Australian Dollar could not benefit significantly, and the momentum was limited, likely contributing to restrained the correction from Monday's gains.
The situation may change on Wednesday, with the US Dollar becoming the primary driver. Market activity could continue on pause until the release of US inflation figures.
AUD/USD short-term technical outlook
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The AUD/USD is moving around the 20-day Simple Moving Average (SMA), staying away from the recent lows but with limited upside momentum. The main trend is down, but the 0.6355 zone is still holding. A break lower would call for further losses.
On the 4-hour chart, it is holding above the 20-SMA with a mildly bullish bias. A decline below 0.6400 would weaken the outlook for the Aussie. On the contrary, consolidation above 0.6440 would open the door to more gains. The MACD favors the upside, but other indicators are flat, influenced by more than 24 hours of limited price action.
Support levels: 0.6420 0.6400 0.6350
Resistance levels: 0.6445 0.6470 0.6500
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Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
