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.

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

Share: Feed news

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.