AUD/USD remains sideways above 0.6500 ahead of US Inflation data


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  • AUD/USD consolidates above 0.6500 as the focus shifts to US inflation data.
  • The Fed is expected to cut interest rates in May.
  • The Australian Dollar will dance to the tunes of the Employment data.

The AUD/USD pair trades in a narrow range above the psychological support of 0.6500 in the early New York session. The Aussie asset struggles for a direction as investors await January’s United States Consumer Price Index (CPI) data for fresh guidance.

S&P500 futures display a subdued performance before the opening of US markets. The US Dollar Index (DXY) extends its recovery to 104.20 as investors are cautious ahead of US inflation data, which will be published on Tuesday.

According to the estimates, the headline inflation grew at a slower pace of 3.0% against 3.4% in December. In the same period, core inflation that excludes volatile food and oil prices decelerated slightly to 3.8% from 3.9%. The monthly headline and core inflation rose steadily by 0.2% and 0.3%, respectively.

The continuation of progress in the underlying inflation declining towards the 2% target will increase the odds of a rate cut by the Federal Reserve (Fed). As per the CME Fedwatch, the chances of a rate cut by 25 basis points (bps) in the March monetary policy meeting are small. While for the May meeting, traders see a 53% chance for a rate cut by 25 bps that will push key rates in the range of 5.00-5.25%.

On the Australia Dollar front, investors will focus on the Australian Employment data for January, which will be released on Thursday. Investors anticipate Australian employers hiring 30K workers against 65.1K lay-offs in December. The Unemployment Rate rose to 4% from 3.9% a month ago.

AUD/USD

Overview
Today last price 0.6522
Today Daily Change -0.0003
Today Daily Change % -0.05
Today daily open 0.6525
 
Trends
Daily SMA20 0.6563
Daily SMA50 0.6649
Daily SMA100 0.6539
Daily SMA200 0.6572
 
Levels
Previous Daily High 0.6534
Previous Daily Low 0.6487
Previous Weekly High 0.654
Previous Weekly Low 0.6469
Previous Monthly High 0.6839
Previous Monthly Low 0.6525
Daily Fibonacci 38.2% 0.6516
Daily Fibonacci 61.8% 0.6505
Daily Pivot Point S1 0.6497
Daily Pivot Point S2 0.6469
Daily Pivot Point S3 0.645
Daily Pivot Point R1 0.6544
Daily Pivot Point R2 0.6562
Daily Pivot Point R3 0.6591

 

 

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