AUD/USD sticks to modest daily gains above 0.6860 ahead of CPI data

  • Annual CPI in Australia is expected to pick up to 1.7% in Q3.
  • Disappointing consumer sentiment data weighs on the Greenback.
  • US Dollar Index posts modest losses ahead of FOMC's policy announcements.

The AUD/USD pair fell to 0.6840 area during the European trading hours but gained bullish momentum in the second half of the day supported by the broad-based USD weakness. Ahead of the inflation data from Australia, the pair is trading at 0.6862, adding 0.25% on a daily basis.

USD weakens on dismal confidence data

The Conference Board on Tuesday reported that consumer confidence deteriorated in the United States in October with the Consumer Confidence Index dropping to 125.9 and missing analysts' estimate of 128. The US Dollar Index, which climbed higher toward the 98 handle earlier in the day, lost its traction on the disappointing data and now looks to close the day with small losses near 97.70.

The Australian Bureau of Statistics is expected to announce that the annual Consumer Price Index (CPI) in the third quarter rose to 1.7% from 1.6%. A softer-than-expected reading could weigh on the AUD as it would allow the Reserve Bank of Australia to remain dovish with regards to its policy outlook.

Earlier on Tuesday, Reserve Bank of Australia (RBA) Governor, Philip Lowe, said that the RBA's governing board was prepared to ease the monetary policy further if needed.

On Wednesday, the Federal Reserve will be announcing its interest rate decision following the US Bureau of Economic Analysis' third-quarter Gross Domestic Product (GDP) report. Previewing the Federal Open Market Committee's (FOMC) policy statement, "The FOMC should communicate patience in deciding future policy moves as they assess the impact of the three cuts they have already delivered," said TD Securities analysts. "We look for the Fed to temporarily pause before resuming rate cuts in Q1 2020."

Technical levels to watch for


Today last price 0.6864
Today Daily Change 0.0026
Today Daily Change % 0.38
Today daily open 0.6838
Daily SMA20 0.6784
Daily SMA50 0.6789
Daily SMA100 0.6851
Daily SMA200 0.696
Previous Daily High 0.6846
Previous Daily Low 0.681
Previous Weekly High 0.6884
Previous Weekly Low 0.6808
Previous Monthly High 0.6895
Previous Monthly Low 0.6687
Daily Fibonacci 38.2% 0.6832
Daily Fibonacci 61.8% 0.6824
Daily Pivot Point S1 0.6817
Daily Pivot Point S2 0.6795
Daily Pivot Point S3 0.6781
Daily Pivot Point R1 0.6853
Daily Pivot Point R2 0.6867
Daily Pivot Point R3 0.6889



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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD advances above 1.14 after unchanged ECB, mixed US data

EUR/USD is trading above 1.14, higher after the ECB left policy unchanged and called governments to act. US retail sales beat with 7.5% while jobless claims disappointed with 1.3 million. US coronavirus figures are showing further increases in cases.


GBP/USD stable around 1.26 amid mostly upbeat US, UK data

GBP/USD is trading closer to 1.26, marginally higher. The UK jobs reports showed low unemployment but also depressed wages. US retail sales beat expectations but jobless claims remain high. 


Gold trades with modest losses, downside remains limited

Gold witnessed a modest intraday pullback amid a pickup in the USD demand. The prevalent risk-off mood extended some support to the safe-haven metal. A sustained break below $1800 is needed to confirm a bearish break.

Gold News

Why is the crypto market falling today?

War for dominance impacts the market and heralds several days of turbulence. Fight between Bitcoin and Ethereum hurts the Altcoin segment, which is largely overbought after weeks of euphoria. Ripple is the most affected of the Top 3 and steps back into a high-risk environment.

Read more

WTI: 200-HMA is a tough nut to crack amid rising wedge breakdown

WTI has bounced-off lows, still sheds over 1% to trade around $40.80, as the OPEC and its allies’ (OPEC+) decision to ease output cuts from next month weighs.

Oil News