AUD/USD trades sideways above the 0.6500 mark, Chinese CPI, PPI data eyed

AUD/USD moves sideways near 0.6520 in Thursday’s early Asian session.
Fed’s speech did not impact the market much; the central bank needs to see more evidence of inflation data.
Futures market traders expect the first rate cuts for the RBA will most likely occur in September rather than August.
Traders will closely monitor the Chinese Consumer Price Index (CPI) and Producer Price Index (PPI) on Thursday.

Lallalit Srijandorn FXStreet

The AUD/USD pair consolidates above the 0.6500 psychological mark during the early Asian section on Thursday. The sell-off in the US Dollar (USD) and prevailing risk-on environment lend some support to the pair. More Fed speakers are scheduled for later on Thursday and Friday, amid the quiet week in terms of economic data releases. At press time, AUD/USD is trading at 0.6520, gaining 0.02% on the day.

Several Fed speakers endorsed the data-driven approach and high for longer narrative. On Wednesday, Federal Reserve (Fed) Governor Adriana Kugler said that inflation is showing solid signs of slowing down, but she is not yet prepared to begin lowering interest rates. Meanwhile, Minneapolis Fed President Kashkari said that the Fed needs more time to gain confidence in the inflation trajectory before beginning to cut rates. He suggested that two to three rate cuts would seem appropriate for 2024, based on current data.

Boston Fed President Collins said that the chances of inflation being over 2% have receded while noting that the path to the 2% target may be rough and rocky. She said that additional evidence is needed to consider rate cuts. The speech did not impact the market much from what we heard at Fed Chair Powell's press conference, The central bank needs to see more inflation data to ensure that it returns to a 2% inflation target sustainably

On the Aussie front, the Reserve Bank of Australia (RBA) kept the interest rate steady on Tuesday and stated that a further hike could not be ruled out as inflation remains too high. Futures market traders anticipate the first easing for the RBA will most likely occur in September rather than August. This, in turn, boosts the Australian Dollar and acts as a tailwind for the AUD/USD pair.

Moving on, the Chinese Consumer Price Index (CPI) and Producer Price Index (PPI) for January are due on Thursday. The weaker-than-expected outcome could exert some selling pressure on the Aussie. Also, the US weekly Initial Jobless Claims are due on Thursday, along with Wholesale Inventories and the speech by Fed’s Barkin (Richmond).

AUD/USD

Overview
Today last price	0.652
Today Daily Change	-0.0004
Today Daily Change %	-0.06
Today daily open	0.6524

Trends
Daily SMA20	0.6589
Daily SMA50	0.6656
Daily SMA100	0.6536
Daily SMA200	0.6575

Levels
Previous Daily High	0.6525
Previous Daily Low	0.6478
Previous Weekly High	0.6624
Previous Weekly Low	0.6502
Previous Monthly High	0.6839
Previous Monthly Low	0.6525
Daily Fibonacci 38.2%	0.6507
Daily Fibonacci 61.8%	0.6496
Daily Pivot Point S1	0.6493
Daily Pivot Point S2	0.6462
Daily Pivot Point S3	0.6446
Daily Pivot Point R1	0.654
Daily Pivot Point R2	0.6556
Daily Pivot Point R3	0.6587

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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