- CPI Ex Food & Energy y/y for February came in line at 1.8%.
- US Dollar Index (DXY) fell below 90 level on US inflation data.
The AUD/USD is trading at around 0.7881, up 0.12% on the day.
The main event of the day is most certainly the inflation data coming from the US. Consumer Price Index Ex Food & Energy y/y for February which came in line at 1.8%. The headline CPI increased 0.2% m/m in February. CPI breakdown here.
The Fed plans to hike three times in 2018. Powell said that four rates hike are possible but after the last NFP, the average hourly earnings decelerated from 2.9% to 2.6% the DXY took a hit as the market started to doubt. It is worth mentioning that last month the market started to price in four rate hikes after higher than expected US inflation numbers which accelerated 0.5% m/m in January.
However, this month the market seem to be disappointed as the US Dollar is being sold across the board losing value against most major currencies as the US Dollar Index is trading below 90.
AUD/USD daily chart:
The AUD/USD broke above a major descending trendline as shown on the chart above (red line). The next support is seen at 0.7925 which is the 50% Fibonacci retracement level from the late January-March down move. The next key resistance is seen at the 61.% Fibonacci retracement from the same move, at 0.7975. Support is seen at 0.7875 which is the 38.2% Fibonacci retracement and close to today’s open. Further down, the 0.7825 level should provide support with the 23.6% Fibonacci retracement.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
AUD/USD recovers above 0.6750 after Australian jobs data
AUD/USD picks up a late bid and recovers above 0.6750 in Asian trading on Thursday, following the release of mixed Australian employment data. The extended post-Fed US Dollar recovery, amid a cautious market mood, could limit the pair's upside ahead of US data.
USD.JPY jumps toward 144.00 on the road to recovery
USD/JPY gains traction and approaches 144.00 in Thursday's Asian session. The uptick of the pair is bolstered by the impressive US Dollar recovery. Investors shift their attention to the US data and the Bank of Japan interest rate decision on Friday.
Gold price remains on the defensive amid the post-FOMC USD recovery from YTD low
Gold price struggles to lure buyers despite the Fed’s jumbo interest rate cut on Wednesday. A further recovery in the US bond yields underpins the USD and caps the non-yielding metal. Concerns about an economic slowdown, along with geopolitical risks, help limit the downside.
Ethereum attempts recovery following first rate cut in four years
Ethereum is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds recorded $15.1 million in outflows.
Australian Unemployment Rate expected to hold steady at 4.2% in August
The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.