AUD/USD resurfaces from 0.6670 as Australian inflation drops to 6.9%


Share:
  • AUD/USD has sensed buying interest around 0.6670 as Australian CPI has remained lower than projections.
  • The Aussie inflation has been trimmed to 6.9% vs. expectations of 7.4% and the prior release of 7.3%.
  • The USD Index has shifted its auction profile above the critical hurdle of 106.80 amid a risk-off mood.

The AUD/USD pair has picked bids around 0 .6670 as the Australian Bureau of Statistics has reported a decline in the monthly Consumer Price Index (CPI). The Australian CPI has landed at 6.9% lower than the expectations of 7.4% and the prior release of 7.3%.

A decline in Australian inflation is expected not to force the Reserve Bank of Australia (RBA) to ditch its current 25 basis points (bps) rate hike culture. Earlier, the street was expecting that RBA Governor Philip Lowe would return to a 50 bps rate hike structure on expectations of an increment in the price rise index.

Apart from that, China’s unrest against Covid curbs announced by authorities to curtail the epidemic has kept the Australian Dollar volatile this week. People are in a state of anger and frustration due to prolonged restrictions on the movement of men, materials, and machines under the zero-Covid policy.

As per the latest developments, the Chinese city of Zhengzhou, home to Apple Inc.’s largest manufacturing site in China, said that it was lifting a lockdown of its main urban areas put in place five days ago as Covid cases climbed. The headline could infuse optimism in the Australian Dollar, being a leading trading partner of China.

Meanwhile, the US Dollar Index (DXY) has shifted its auction profile above the critical hurdle of 106.80 in the Asian session. The risk aversion theme is intact and may remain solid as investors have turned nervous ahead of the speech from Federal Reserve (Fed) chair Jerome Powell. This will provide meaningful cues about the likely monetary policy action in December.

Apart from that, the release of other key catalysts such as US Automatic Data Processing (ADP) Employment, Gross Domestic Product (GDP), core Personal Consumption Expenditure (PCE), and the Fed’s Beige Book will be keenly watched.

AUD/USD

Overview
Today last price 0.6686
Today Daily Change -0.0002
Today Daily Change % -0.03
Today daily open 0.6688
 
Trends
Daily SMA20 0.6612
Daily SMA50 0.6487
Daily SMA100 0.6687
Daily SMA200 0.693
 
Levels
Previous Daily High 0.6749
Previous Daily Low 0.664
Previous Weekly High 0.6781
Previous Weekly Low 0.6585
Previous Monthly High 0.6548
Previous Monthly Low 0.617
Daily Fibonacci 38.2% 0.6707
Daily Fibonacci 61.8% 0.6682
Daily Pivot Point S1 0.6636
Daily Pivot Point S2 0.6584
Daily Pivot Point S3 0.6527
Daily Pivot Point R1 0.6745
Daily Pivot Point R2 0.6801
Daily Pivot Point R3 0.6853

 

 

Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD bounces from 1.0800 in the US afternoon

EUR/USD bounces from 1.0800 in the US afternoon

EUR/USD lost its bullish momentum and declined toward 1.0800 in the second half of the day on Thursday. The upbeat Jobless Claims and February PMI data from the US helps the US Dollar find demand and weighs on the pair.

EUR/USD News

GBP/USD drops below 1.2650 as USD rebounds

GBP/USD drops below 1.2650 as USD rebounds

GBP/USD reversed its direction and declined below 1.2650 after rising above 1.2700 earlier in the day. Renewed US Dollar strength on the back of better-than-forecast Jobless Claims and upbeat PMI data makes it difficult for the pair to keep its footing.

GBP/USD News

Gold challenging the $2,020 mark

Gold challenging the $2,020 mark

Spot Gold eased from a fresh multi-week high of $2,034.86. The US Dollar edged sharply lower during Asian trading hours and remained on the back foot through most of the European session but turned higher ahead of Wall Street’s opening. 

Gold News

XRP price declines with developments in SEC v. Ripple lawsuit

XRP price declines with developments in SEC v. Ripple lawsuit

XRP price dropped below $0.55 on Thursday as both Ripple and SEC work on remedy-related briefs. March 13 is the next key deadline for the SEC v. Ripple lawsuit.  

Read more

Nvidia drives global markets to records, as European stocks defy German economic gloom

Nvidia drives global markets to records, as European stocks defy German economic gloom

Markets are a sea of green after Nvidia’s earnings report has boosted global risk appetite and stock markets surging. Boost to Nvidia’s share price after another monster earnings report and super forecast has led to a collective relief rally across markets.

Read more

Forex MAJORS

Cryptocurrencies

Signatures