AUD/USD Price Analysis: On the verge to test a five-month high around 0.7060 ahead of Australian CPI


  • AUD/USD is aiming to print a fresh five-month high above 0.7060 ahead of Australian inflation.
  • The USD Index has found an intermediate cushion around 101.50, however, the downside bias is still solid.
  • A bullish momentum will be triggered after a jump by the RSI (14) into the bullish range of 60.00-80.00.

The AUD/USD pair is juggling in a narrow range above the crucial support of 0.7040 in the early Asian session. The Aussie asset is on the verge of hitting a five-month high at 0.7060 ahead of the release of the Australian Consumer Price Index (CPI) data. The consensus claims an escalation in the annual inflation to 7.5% from the prior release of 7.3%. While monthly inflation is seen sharply higher at 7.7% from the former release of 7.3%.

Investors’ risk appetite has improved again as S&P500 futures have recovered their marginal losses witnessed on Tuesday. The US Dollar Index (DXY) has found an intermediate cushion around 101.50, however, the downside bias is still solid.

AUD/USD is marching towards the five-month high plotted from January 18 high at 0.7064 on an hourly scale. The Aussie asset displayed a V-shape recovery from January 19 low around 0.6875, which provides confidence that bullish momentum is present in the current trend.

Upward-sloping 20-and 50-period Exponential Moving Averages (EMAs) at 0.7035 and 0.7014 respectively, add to the upside filters.

What is interesting in the current scenario is the inventory adjustment phase below the critical resistance of 0.7060. This seems to be an inventory accumulation in a bullish trend, which favors the continuation of the upside journey after the conclusion.

Also, the Relative Strength Index (RSI) (14) is looking to shift into the bullish range of 60.00-80.00, which will trigger the bullish momentum.

For more upside, the Aussie asset needs to surpass the five-month high around 0.7060 decisively, which will drive the major towards August 11 high at 0.7137. A breach of the latter will expose the asset to the round-level resistance at 0.7200.

On the contrary, a downside move below December 29 low at 0.6710 will drag the major further toward December 22 low at 0.6650 followed by November 21 low at 0.6585.

AUD/USD hourly chart

AUD/USD

Overview
Today last price 0.7047
Today Daily Change 0.0021
Today Daily Change % 0.30
Today daily open 0.7026
 
Trends
Daily SMA20 0.6875
Daily SMA50 0.6786
Daily SMA100 0.6643
Daily SMA200 0.6818
 
Levels
Previous Daily High 0.704
Previous Daily Low 0.696
Previous Weekly High 0.7064
Previous Weekly Low 0.6872
Previous Monthly High 0.6893
Previous Monthly Low 0.6629
Daily Fibonacci 38.2% 0.7009
Daily Fibonacci 61.8% 0.699
Daily Pivot Point S1 0.6978
Daily Pivot Point S2 0.6929
Daily Pivot Point S3 0.6898
Daily Pivot Point R1 0.7058
Daily Pivot Point R2 0.7089
Daily Pivot Point R3 0.7137

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD refreshes day’s low below 0.7100 amid risk-off mood

AUD/USD refreshes day’s low below 0.7100 amid risk-off mood

The AUD/USD pair has refreshed its day’s low at 0.7083 as investors have turned risk-averse amid the interest rate decision by the Federal Reserve (Fed) this week. The US Dollar Index (DXY) has displayed a wild gyration in a 101.40-101.57 range as the volatility is accelerating dramatically.

AUD/USD News

EUR/USD reflects market tension around 1.0870 ahead of German GDP, Fed vs. ECB battle

EUR/USD reflects market tension around 1.0870 ahead of German GDP, Fed vs. ECB battle

EUR/USD treads water around 1.0870-60 as markets remain on a dicey floor ahead of the key central bank meetings and data. Adding strength to the market’s indecision could be the return of China and fears of a softer growth number from Germany.

EUR/USD News

Gold stays defensive above $1,920 support as US Dollar steadies ahead of Fed, NFP

Gold stays defensive above $1,920 support as US Dollar steadies ahead of Fed, NFP

Gold price (XAU/USD) aptly portrays the market’s cautious mood ahead of top-tier data/events during early Monday. The metal rose in the last six weeks before losing the upside momentum at the latest.

Gold News

Why Ethereum bears need to be cautious about shorting ETH before $2,000

Why Ethereum bears need to be cautious about shorting ETH before $2,000

Ethereum price has been consolidating after the January rally subsided after three weeks. This tightening continues even after BTC shot up 3% over the weekend. Therefore, a short-term spike in buying pressure should is likely. This move could propel ETH to tag immediate hurdles, liquidating early bears.

Read more

Big risk this week Fed hikes 50 points

Big risk this week Fed hikes 50 points

While the entire global investment community is apparently very excited about the US Federal Reserve slowing its rate increases to 25 point increments, there are strong reasons for arguing why another 50 point rate hike, or two, are still on the Fed menu.

Read more

Forex MAJORS

Cryptocurrencies

Signatures