- AUD/USD stands still with the market awaiting the US Core PCE inflation figures and personal spending insights.
- Forecasts suggest a slight slowdown in Core PCE inflation for February, with personal income and spending data also in focus.
- Australian economic indicators hint at a cooling economy, increasing speculation on RBA's future rate decisions.
The Aussie Dollar remains subdued against the US Dollar on Friday due to thin liquidity conditions in the observance of Good Friday. A busy economic docket in the United States (US) might entertain Forex market traders with the release of the Personal Consumption Expenditures (PCE) price index and Federal Reserve officials' speeches. The AUD/USD trades at 0.6513, virtually unchanged.
AUD/USD traders eye US key economic data ahead of the weekend
The AUD/USD price action shows traders waiting to release the Fed’s preferred gauge for inflation, the Core PCE for February. The consensus foresees the latter slowing from 0.4% to 0.3% MoM, with annual figures expected to remain unchanged at 2.8% as in January. In the meantime, headline PCE is expected to tick higher from 0.3% to 0.4% MoM and, in the 12 months to February, rise from 2.4% to 2.5%.
Alongside that data, the US Bureau of Economic Analysis (BEA) will release Personal Income and Personal Spending data, which would shed some light on American consumer behavior. According to BBH analysts, the jump in February Retail Sales could underpin personal spending data.
On the Australia’s front, economic data revealed during the week, revealed that monthly inflation was below estimates, with Retail Sales missing forecasts. With the economy beginning to show signs of slowing down, has raised expectations for potential interest rate cuts by the Reserve Bank of Australia (RBA) toward the second half of 2024.
Next week, Aussie’s Judo Bank PMI figures, along with the RBA's latest meeting minutes, could shed some light on the economy's progress.
AUD/USD Price Analysis: Technical outlook
The AUD/SD remains neutral to downward biased. Ahead of the release of US PCE, look for stir resistance at the confluence of the 100 and the 200-day moving averages (DMAs) at 0.6546. Further upside is seen at the 100-DMA at 0.6594, ahead of 0.6600. On the flip side, first support is seen at 0.6500, followed by the March 5 low of 0.6477.
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.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.