AUD/USD consolidates its gains near 0.6430 ahead of Australian Confidence survey

AUD/USD takes a breather after surging from 0.6370 to 0.6430 amid the improvement in risk sentiment.
The Australian Dollar benefited from the upbeat China's inflation data.
Traders will monitor the Australian Confidence survey, US Consumer Price Index (CPI) data.

Lallalit Srijandorn FXStreet

The AUD/USD pair edges higher and consolidates its recent gains around 0.6430 during the early Asian session on Tuesday. The rebound of the pair is bolstered by the weaker US Dollar (USD) and improvement in risk sentiment. Meanwhile, the US Dollar Index (DXY) hovers around 104.50 after retracing from the 105.00 area.

The China-proxy Australian dollar (AUD) benefited from China's inflation data. The Chinese Consumer Price Index (CPI) rose 0.1% YoY, from a 0.3% drop in the previous month, compared to the 0.2% rise anticipated. The monthly figure was 0.3% as expected. The improvement in Chinese inflation figures boosted the risk-on mood and dragged the safe-haven US Dollar lower.

On the US Dollar front, investors await the highly-anticipated US Consumer Price Index (CPI) data which might convince the Federal Reserve (Fed) interest rate expectation. The upbeat data would suggest the Federal Reserve needs to tighten monetary policy. This, in turn, might lift the Greenback against its rivals.

After the G20 Summit, US Treasury Secretary Janet Yellen conveyed more optimism that the US could control inflation without damaging the employment market. Yellen also said on Sunday that every gauge of inflation is declining and there were no massive wave of layoffs. Chicago Fed President Austan Goolsbee outlined the central bank's goal of leading the economy into a "golden path." This route represents a scenario in which inflation falls without causing a recession. Furthermore, Fed New York President John Williams said last week that highlighted the decline in inflation and an improving economic balance.

Looking ahead, market participants await the Australian Confidence surveys due later on Tuesday. The Westpac Consumer Confidence is expected at 0.6%. The NAB Business Confidence Index is expected to drop to 1 in August, up from -2 in July. Later this week, the US Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday will be released. Traders will take cues from these figures and find the trading opportunity around the AUD/USD pair.

AUD/USD

Overview
Today last price	0.643
Today Daily Change	0.0052
Today Daily Change %	0.82
Today daily open	0.6378

Trends
Daily SMA20	0.6431
Daily SMA50	0.6581
Daily SMA100	0.6627
Daily SMA200	0.6713

Levels
Previous Daily High	0.6415
Previous Daily Low	0.6367
Previous Weekly High	0.648
Previous Weekly Low	0.6357
Previous Monthly High	0.6724
Previous Monthly Low	0.6364
Daily Fibonacci 38.2%	0.6397
Daily Fibonacci 61.8%	0.6385
Daily Pivot Point S1	0.6358
Daily Pivot Point S2	0.6339
Daily Pivot Point S3	0.6311
Daily Pivot Point R1	0.6406
Daily Pivot Point R2	0.6434
Daily Pivot Point R3	0.6453

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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