AUD/USD gains ground below the mid-0.6500s, eyes on RBA minutes

AUD/USD trades in positive territory for four consecutive days near 0.6530.
The US January PPI came in stronger than expected, rising 0.3% MoM and 0.9% YoY.
Financial markets are betting that the RBA will cut rates in the middle of the year.

Lallalit Srijandorn FXStreet

The AUD/USD pair kicks off the new week on a positive note during the early Asian session on Monday. The uptick of the pair is supported by the decline of the US Dollar (USD). AUD/USD currently trades around 0.6530, losing 0.03% on the day.

Data released by the US Labor Department on Friday showed that the Producer Price Index (PPI) in January increased by 0.3% MoM from a 0.1% decline in December. The gauge rose 0.9% in a year, also exceeding forecasts. The stronger data represent a rise in inflation pressure at the start of 2024. However, the Federal Reserve (Fed) needs more data to consider before starting to cut the interest rate.

Meanwhile, the upside of the pair might be capped by the rising tensions in the Middle East. The leader of Hezbollah, the Iran-backed militant group said it will broaden its war against Israel in the wake of recent strikes between the two sides. This, in turn, could boost a safe-haven currency like the US Dollar (USD) and act as a headwind for the AUD/USD pair.

The Reserve Bank of Australia (RBA) hasn't been expected to cut rates until after the Fed. Investors are pricing in August as the likely start for RBA rate cuts. Inflation in Australia has cooled down, but the central bank cannot attribute all of this to monetary policy success.

Looking ahead, the RBA minutes will be released on Tuesday, and the FOMC minutes for the 30-31 January meeting will be due on Wednesday. The Australian Judo Bank PMI data will be released on Thursday, and FOMC Vice Chair Jefferson is set to speak later on the same day.

AUD/USD

Overview
Today last price	0.6529
Today Daily Change	-0.0004
Today Daily Change %	-0.06
Today daily open	0.6533

Trends
Daily SMA20	0.6541
Daily SMA50	0.6642
Daily SMA100	0.6544
Daily SMA200	0.6566

Levels
Previous Daily High	0.6545
Previous Daily Low	0.6496
Previous Weekly High	0.6545
Previous Weekly Low	0.6443
Previous Monthly High	0.6839
Previous Monthly Low	0.6525
Daily Fibonacci 38.2%	0.6526
Daily Fibonacci 61.8%	0.6515
Daily Pivot Point S1	0.6504
Daily Pivot Point S2	0.6476
Daily Pivot Point S3	0.6456
Daily Pivot Point R1	0.6553
Daily Pivot Point R2	0.6573
Daily Pivot Point R3	0.6601

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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