The AUDUSD currency pair is experiencing a decline as a result of Australia’s underwhelming inflation data.

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• AUD/USD trades lower on disappointing Australia’s inflation.

The pair currently trades last at 0.64567.

The previous day high was 0.6487 while the previous day low was 0.6401. The daily 38.2% Fib levels comes at 0.6454, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6434, expected to provide support.

AUD/USD retreats from a two-day winning streak, trading around 0.6460 at the time of writing during the European session on Wednesday. The pair is experiencing downward pressure due to the downbeat macroeconomic data from Australia released on early Wednesday.

Australia’s inflation decreased to a 17-month low in July, a factor that could potentially lead the Reserve Bank of Australia (RBA) to decide on keeping interest rates unchanged during its upcoming policy meeting. As said, Australia’s Monthly Consumer Price Index (CPI) revealed that inflation declined to 4.9% (YoY) for July, lower than the expectations of 5.2% and from the previous reading of 5.4%. While the Building Permits (MoM) showed a fall of 8.1% for July compared to an expected fall of 0.8% and from the previous 7.7% decline.

The US Dollar Index (DXY), which measures the performance of the US Dollar (USD) against the six other major currencies, retraces from the previous two-day losses, currently trading higher around 103.70. US Treasury yields rebound from recent losses, providing support to the Greenback. However, the prevailing dovish sentiment regarding the US Federal Reserve’s (Fed) policy stance is providing support in undermining the safe-haven US Dollar (USD).

Investors will closely watch the upcoming US economic data in order to obtain a clearer understanding of the economic trajectory of the United States (US). This emphasis has been prompted by Fed Chairman Jerome Powell’s comments during the Jackson Hole Symposium, underscoring that any forthcoming interest rate decision will be guided by data-driven analysis.

On Wednesday, the macroeconomic calendar features significant events, including the release of the US ADP Employment Change figures for August and the preliminary Gross Domestic Product Annualized data for the second quarter (Q2). These datasets will play a pivotal role in formulating strategies prior to initiating new positions on the AUD/USD pair.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6465 at the time of writing. Pair opened at 0.648 and is trading with a change of -0.23 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6477, 50 SMA 0.6622, 100 SMA @ 0.6651 and 200 SMA @ 0.6726.

The previous day high was 0.6487 while the previous day low was 0.6401. The daily 38.2% Fib levels comes at 0.6454, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6434, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6425, 0.6371, 0.634
• Pivot resistance is noted at 0.6511, 0.6542, 0.6597

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