AUD/USD erases daily gains after US CPI, drops toward 0.6550

US CPI inflation in line with expectation, US Dollar drops then recovers sharply.
US Dollar Index holds in negative territory for the day.
The AUD/USD pair faces resistance at 0.6630 and has a key support at 0.6550.

Matías Salord FXStreet

The AUD/USD spiked to 0.6612 following the release of the US inflation data, but it then fell to its daily low near 0.6550. The pair is now hovering around 0.6570 as markets digest the data ahead of Wednesday's FOMC decision.

USD down then up, after US CPI data

Inflation in the US cooled as anticipated in November, as measured by the Consumer Price Index (CPI). The CPI rose 0.1% during the month, and the annual rate slowed from 3.2% in October to 3.1% in November. The core annual reading remained steady at 4%.

The US Dollar initially hit fresh daily lows with this news, but then rebounded sharply. The DXY is currently down 0.30% for the day, trading around 103.80. Market participants continue to digest the CPI figures. On Wednesday, the Producer Price Index (PPI) is due to be released, and later, the Federal Reserve will announce its decision on monetary policy and provide new economic projections.

The AUD/USD is trading near Monday's close, around 0.6570, after finding support above Asian session lows and the 0.6555 area. The pair continues to move sideways, limited on the upside by 0.6630 and with a strong support area at 0.6550.

Technical levels

AUD/USD

Overview
Today last price	0.656
Today Daily Change	-0.0007
Today Daily Change %	-0.11
Today daily open	0.6567

Trends
Daily SMA20	0.6571
Daily SMA50	0.645
Daily SMA100	0.6464
Daily SMA200	0.6576

Levels
Previous Daily High	0.6583
Previous Daily Low	0.655
Previous Weekly High	0.6691
Previous Weekly Low	0.6526
Previous Monthly High	0.6677
Previous Monthly Low	0.6318
Daily Fibonacci 38.2%	0.6563
Daily Fibonacci 61.8%	0.6571
Daily Pivot Point S1	0.6551
Daily Pivot Point S2	0.6534
Daily Pivot Point S3	0.6517
Daily Pivot Point R1	0.6584
Daily Pivot Point R2	0.66
Daily Pivot Point R3	0.6617

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.

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