AUD/USD hits resistance near 0.6690 after rally inspired by hot Aussie Inflation

AUD/USD loses some intraday gains as the US Dollar rises strongly.
Aussie’s hot CPI report for May has prompted RBA rate-hike bets.
Investors shift focus to the US core PCE Inflation report for May.

Sagar Dua FXStreet

The AUD/USD pair surrenders some of its intraday gains after reaching to near 0.6690 in Wednesday’s European session. The Aussie asset struggles to extend the rally inspired by the hotter-than-expected Australian monthly Consumer Price Index (CPI) data for May.

The data showed that price pressures grew at a robust pace of 4.0% from the estimates of 3.8% and the prior release of 3.6%. As per the inflation report, high prices of fuel, food, electricity and rentals were prompted inflationary pressures.

Stubbornly higher Australian inflation data has kept hopes of more rate hikes by the Reserve Bank of Australia (RBA) on table. Currently, the RBA has been maintaining its Official Cash Rate (OCR) at 4.35% from last eight months.

Meanwhile, the US Dollar (USD) rises to near the crucial resistance of 106.00 as the Federal Reserve (Fed) continues to support the maintenance of the current interest rate framework for a longer period. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, jumps to near the crucial resistance of 106.00. On Tuesday, Fed Governor Michelle Bowman said interest rates need to remain high for some time to bring inflation under control.

Contrary to Fed’s remarks on the interest rate outlook, market participants expect that the Fed will cut interest rates twice this year and will start the policy-normalization process from the September meeting.

On the economic front, investors await the United States (US) core Personal Consumption Expenditure Price Index (PCE) data for May, which will be published on Friday.

AUD/USD

Overview
Today last price	0.6662
Today Daily Change	0.0015
Today Daily Change %	0.23
Today daily open	0.6647

Trends
Daily SMA20	0.664
Daily SMA50	0.6602
Daily SMA100	0.6571
Daily SMA200	0.6554

Levels
Previous Daily High	0.6673
Previous Daily Low	0.6635
Previous Weekly High	0.6679
Previous Weekly Low	0.6585
Previous Monthly High	0.6714
Previous Monthly Low	0.6465
Daily Fibonacci 38.2%	0.665
Daily Fibonacci 61.8%	0.6658
Daily Pivot Point S1	0.6631
Daily Pivot Point S2	0.6614
Daily Pivot Point S3	0.6593
Daily Pivot Point R1	0.6668
Daily Pivot Point R2	0.6689
Daily Pivot Point R3	0.6706

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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