Despite the release of US CPI data, the AUDUSD pair is trading at 0.6787 and has gained 0.55% from its initial value of 0.67804.
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- AUD/USD gains 0.55%, trading at 0.6787 despite the US CPI data release.
The pair currently trades last at 0.67804.
The previous day high was 0.6774 while the previous day low was 0.6732. The daily 38.2% Fib levels comes at 0.6757, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6748, expected to provide support.
AUD/USD remains trading in the green, extending its rally to four straight days, but gave back some of its earlier gains following an inflation report in the United States (US). Data released from Australia in the Asian session lifted the pair, but at the time of writing, it exchanges hands at 0.6783, up 0.55%.
The US Bureau of Labor Statistics (BLS) released May inflation figures, with the Consumer Price Index (CPI) expanding 4% YoY, below estimates of 4.1% and the prior’s month 4.9%. Excluding volatile items, the so-called core CPI stood at 5.3% YoY, aligned with estimates, though it ticked 0.2% lower than April’s data.
Therefore, as inflation cools, the Federal Reserve (Fed) can skip a rate hike in June to check the economic status before the July meeting. Money market futures estimate the Fed would raise rates 25 basis points (bps) to 5.25%-5.50% next month, as shown by the CME FedWatch Tool, with chances standing at 58.2%, higher than a week ago.
After the inflation release, the AUD/USD edged towards a five-week high of 0.6802 before making a U-turn as investors digested US data. Nevertheless, the AUD/USD has resumed its uptrend, approaching the 0.6790 area, shy of the 0.68 handle.
On the Aussie (AUD) front, Consumer Confidence for June, revealed by Westpac, printed a marginal gain of 0.2%, above estimates of 0%, but smashed May figures of -7.9%. Nevertheless, it should be said the reading remains at soft levels, with Australians hurt by the high inflationary pressures and the Reserve Bank of Australia (RBA) tightening cycle.
Must read: FOMC Preview: Banks expect the Fed to take a break, but signal higher rates ahead
The US economic docket will feature the US Federal Reserve Open Market Committee (FOMC) monetary policy decision, followed by the Fed Chair Powell press conference. The Producer Price Index (PPI) for May will be revealed earlier.
The AUD/USD remains neutrally biased, slightly tilted upwards, as the 200-day Exponential Moving Averages (EMAs) sit above the spot price. However, to resume its bullish continuation, the AUD/USD must reclaim 0.6800 before testing the psychological 0.6850 before challenging the February 21 high of 0.6919. Conversely, failure at 0.6800 could pave the way for a test of the 200-day EMA at 0.6758.
Technical Levels: Supports and Resistances
AUDUSD currently trading at 0.6791 at the time of writing. Pair opened at 0.675 and is trading with a change of 0.61 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.6791 |
| 1 | Today Daily Change | 0.0041 |
| 2 | Today Daily Change % | 0.6100 |
| 3 | Today daily open | 0.6750 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.6615, 50 SMA 0.6662, 100 SMA @ 0.6738 and 200 SMA @ 0.6691.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.6615 |
| 1 | Daily SMA50 | 0.6662 |
| 2 | Daily SMA100 | 0.6738 |
| 3 | Daily SMA200 | 0.6691 |
The previous day high was 0.6774 while the previous day low was 0.6732. The daily 38.2% Fib levels comes at 0.6757, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6748, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 0.673, 0.671, 0.6688
- Pivot resistance is noted at 0.6772, 0.6794, 0.6814
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.6774 |
| Previous Daily Low | 0.6732 |
| Previous Weekly High | 0.6751 |
| Previous Weekly Low | 0.6579 |
| Previous Monthly High | 0.6818 |
| Previous Monthly Low | 0.6458 |
| Daily Fibonacci 38.2% | 0.6757 |
| Daily Fibonacci 61.8% | 0.6748 |
| Daily Pivot Point S1 | 0.6730 |
| Daily Pivot Point S2 | 0.6710 |
| Daily Pivot Point S3 | 0.6688 |
| Daily Pivot Point R1 | 0.6772 |
| Daily Pivot Point R2 | 0.6794 |
| Daily Pivot Point R3 | 0.6814 |
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