AUD/USD remains on the defensive above 0.6350, focus on US CPI data

AUD/USD remains on the defensive above the mid-0.6300s in early Monday.
The US University of Michigan Consumer Sentiment dropped, but inflation expectations rose in November.
The RBA Monetary Policy Statement said the nation’s inflation has passed its peak, but it is considerably higher than expected.

Lallalit Srijandorn FXStreet

The AUD/USD pair remains under selling pressure during the early Asian session on Monday. The concern over economic growth in China weighs on the Australian Dollar (AUD) and the higher US Treasury bond yields lift the US Dollar (USD) higher. The pair currently trades near 0.6355, losing 0.07% on the day.

The preliminary US University of Michigan Consumer Sentiment data for November fell to 60.4 from 63.8 in the previous month, the lowest reading this year. Meanwhile, the 1-year inflation expectations rose to 4.4% from 4.2% and the 5-year rose to 3.2%, its highest reading in 11 years.

The markets see a low chance of the Federal Reserve (Fed) raising interest rates again in its December meeting. According to the CME FedWatch Tools, the odds for rate hikes in December dropped to 14.4%. However, Fed Chair Jerome Powell stated that they will not hesitate to raise rates again if it’s necessary. The key economic data this week, including the US Consumer Price Index (CPI) might offer hints about monetary policy guidance.

On the Aussie front, the Reserve Bank of Australia (RBA) released its Monetary Policy Statement (MPS) on Friday, indicating the nation’s inflation has passed its peak, but it remains considerably high and is proving to be more persistent than expected a few months ago. The RBA will bring inflation back to target, but the upcoming data will determine whether additional monetary policy tightening is required.

Looking ahead, market players will monitor the Australian Westpac Consumer Confidence for November on Tuesday. The US Consumer Price Index (CPI) will be a closely watched event by traders. The monthly CPI figure is expected to ease to 0.1% in October from 0.4% in the previous reading, while the core CPI is estimated to remain at 0.3%.

AUD/USD

Overview
Today last price	0.6362
Today Daily Change	0.0001
Today Daily Change %	0.02
Today daily open	0.6361

Trends
Daily SMA20	0.6372
Daily SMA50	0.6388
Daily SMA100	0.6497
Daily SMA200	0.6606

Levels
Previous Daily High	0.6372
Previous Daily Low	0.6339
Previous Weekly High	0.6523
Previous Weekly Low	0.6339
Previous Monthly High	0.6445
Previous Monthly Low	0.627
Daily Fibonacci 38.2%	0.6351
Daily Fibonacci 61.8%	0.6359
Daily Pivot Point S1	0.6342
Daily Pivot Point S2	0.6324
Daily Pivot Point S3	0.6309
Daily Pivot Point R1	0.6376
Daily Pivot Point R2	0.6391
Daily Pivot Point R3	0.6409

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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