AUD/USD hovers near 0.6600 as markets await Aussie’s Business, Consumer Confidence data
- AUD/USD up due to better sentiment, USD dip amid mixed Wall Street results.
- US inflation steady; Fed's positive economy outlook influences currencies.
- US inflation, Australian consumer confidence data critical for economic assessment.
The Australian Dollar posted solid gains on Monday, rising 0.42% against the US Dollar amid an improvement in risk appetite and a light economic calendar. The AUD/USD pair trades at 0.6604, virtually flat, as Tuesday’s Asian session begins.
AUD/USD sees a modest uptick after gaining on Monday, ahead of US CPI
Wall Street’s session concluded with a mixed bag of results. While the S&P 500 and the Dow Jones registered losses, the Nasdaq Composite saw a rise. This divergence was accompanied by a 0.16% decline in the Greenback, as indicated by the US Dollar Index (DXY), which stands at 104.12.
The US economic docket was light, except for the New York Fed Consumer Inflation Expectations for March, rising by 3%, unchanged compared to February’s data. Chicago’s Fed President Austan Goolsbee began the Fed parade on Monday, saying that the economy is on golden path, while emphasizing the economy remains strong due to a tight labor market.
US and Aussie economic data
In the meantime, traders are awaiting the latest inflation report in the United States (US), to have a better grasp of the disinflation process. If prices continue to trend lower, that would be negative for the buck and positive for risk-perceived assets, like the Aussie Dollar.
On Australia’s front, market players would be entertained by the Westpac Consumer Confidence and the NAB Business Confidence, both figures from March.
AUD/USD Price Analysis: Technical outlook
On Monday, the AUD/USD had risen above a downslope resistance trendline at around the 0.6580/90 area, which opened the door for buyers to reclaim 0.6600. They’re gathering momentum, as depicted by the Relative Strength Index (RSI), aiming north, with enough room to enter overbought conditions. If the pair surpasses the April 4 high of 0.6619, the next stop would be intermediate resistance at 0.634, the March 21 high ahead of March 8, and the latest higher high at 0.6667.
On the other hand, the AUD/USD first support would be the 100-day moving average (DMA) at 0.6600. A breach of the latter will expose the April 5 low of 0.6549, followed by the confluence of the 50/200-DMA at 0.6543.
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
