AUD/USD remains under selling pressure near 0.6400 ahead of the US CPI data

AUD/USD remains under pressure around 0.6400 ahead of the US key inflation data.
The Australian Consumer Confidence data exerts some pressure on the Aussie.
The US Dollar (USD) may benefit from the higher for longer interest rate narrative in the US.
US Consumer Price Index (CPI), Australian employment data will be closely watched events.

Lallalit Srijandorn FXStreet

The AUD/USD pair attracts some sellers and drops to the 0.6400 area during the early European trading hours on Wednesday. The pair is trading near 0.6404, losing 0.33% on the day. Markets turn cautious ahead of the highly anticipated US inflation data.

The Australian Consumer Confidence Index fell into negative territory in August, limiting the Australian dollar's upside potential. Data released on Tuesday revealed that Australia’s Westpac Consumer Confidence for September fell by 1.5% to 79.7, following a 0.4% drop in the previous reading. The figures fueled concern about the impact of the economic slowdown in China.

Additionally, Beijing's delayed implementation of additional stimulus measures has increased the level of concern. It’s worth noting that China is Australia’s top trading partner and the economic downturn in China might exert some selling pressure on the Aussie.

On the other hand, the US Dollar (USD) may benefit from the higher for longer interest rate narrative in the US. The August US Consumer Price Index (CPI) could provide hints about the further monetary policy from the Federal Reserve (Fed) for the rest of the year. The annual CPI figure is anticipated to rise from 3.2% to 3.6%, while the core figure is expected to fall from 4.7% to 4.3%.

Market players await the US Consumer Price Index for August due later in the day. The stronger-than-expected data might convince the Fed to hike an additional rate. Attention will shift to the Australian employment data and the US Producer Price Index (PPI) for August on Thursday. These figures could give a clear direction to the AUD/USD pair.

AUD/USD technical outlook:

The AUD/USD pair trades below the 50- and 100-hour Exponential Moving Averages (EMAs) on the one-hour chart, indicating that the path of least resistance for the pair is to the downside.

Resistance level: 0.6432, 0.6500 and 0.6522

Support level: 0.6400, 0.6380 and 0.6365

AUD/USD

Overview
Today last price	0.6408
Today Daily Change	-0.0018
Today Daily Change %	-0.28
Today daily open	0.6426

Trends
Daily SMA20	0.6427
Daily SMA50	0.6571
Daily SMA100	0.6622
Daily SMA200	0.671

Levels
Previous Daily High	0.644
Previous Daily Low	0.6408
Previous Weekly High	0.648
Previous Weekly Low	0.6357
Previous Monthly High	0.6724
Previous Monthly Low	0.6364
Daily Fibonacci 38.2%	0.642
Daily Fibonacci 61.8%	0.6428
Daily Pivot Point S1	0.641
Daily Pivot Point S2	0.6393
Daily Pivot Point S3	0.6378
Daily Pivot Point R1	0.6441
Daily Pivot Point R2	0.6456
Daily Pivot Point R3	0.6472

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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