- AUD/USD bounces off intraday low during a three-day downtrend.
- Australia Consumer Inflation Expectations rose to 4.4% in June, US-China agrees to push forward trade, investment ties.
- US Treasury yields remain pressured near March lows, stock futures print mild gains.
- Further downside envisioned amid pre-CPI caution, a below-forecast data can recall pair buyers.
AUD/USD pares intraday losses during the three-day fall around 0.7730, following a U-turn from 0.7721, amid Thursday’s Asian session. Even so, the quote prints 0.03% downside on a day, the third in a row, by the press time.
The recent headlines suggesting the Commerce Heads of the US and China agreed to manage differences properly seemed to have triggered the AUD/USD pair’s rebound. The news also states that the policymakers affirmed moving forward on the trade and investment ties.
Also positive for the AUD/USD prices could be the Aussie Consumer Inflation Expectations for June, 4.4% versus 3.6% expected and 3.5% prior. Furthermore, Axios’ report saying that the White House remains confident on the economy ahead of the US CPI also backs the pair’s latest consolidation.
Alternatively, chatters over the US-UK push for a global inquiry into the covid origin and the Financial Times (FT) news mentioning, “(US) President Biden rallies allies to take a tougher stance on China,” weigh on the mood.
On the same line could be the US passage of a law aiming to complete with Chinese technology companies and Beijing’s reaction to the same as well as the market anxiety ahead of the key US inflation data, Consumer Price Index (CPI) for May.
As the early signals for the US CPI have already cited near-term inflation upside, a stronger-than-expected figure becomes necessary to push the Fed towards any action during the next week’s meeting. The same, if happens, could drag AUD/USD prices further to the south.
Read: US CPI May Preview: Inflation angst is coming
Technical analysis
A gradually firming bearish bias below 21-day SMA and a three-week-old falling trend line, respectively around 0.7745 and 0.7770, directs AUD/USD sellers toward the 0.7700 threshold. However, any further weakness could be tested by multiple supports around 0.7675.
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 gains momentum above 0.6500 ahead of Australian Retail Sales data
AUD/USD trades in positive territory for six consecutive days around 0.6535 during the early Asian session on Monday. The upward momentum of the pair is bolstered by the hawkish stance from the Reserve Bank of Australia after the recent release of Consumer Price Index inflation data last week.
EUR/USD: Federal Reserve and Nonfarm Payrolls spell action this week
The EUR/USD pair temporarily reconquered the 1.0700 threshold last week, settling at around that round level. The US Dollar lost its appeal following discouraging United States macroeconomic data indicating tepid growth and persistent inflationary pressures.
Gold trades on a softer note below $2,350 on hotter-than-expected US inflation data
Gold price trades on a softer note near $2,335 on Monday during the early Asian session. The recent US economic data showed that US inflationary pressures staying firm, which has added further to market doubts about near-term US Federal Reserve rate cuts.
Ethereum fees drops to lowest level since October, ETH sustains above $3,200
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
Week ahead: Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.