As Shane Oliver pointed out in his remarks on the US Jobs Report, the upcoming US CPI Report will play a crucial role in shaping near-term trends for the AUD/USD pair. A weaker-than-expected CPI figure could potentially overshadow softer Australian consumer inflation expectations, leading to a potential move towards the $0.67 mark for the currency pair. It is essential for investors to pay close attention to monetary policy-related statements from both the Reserve Bank of Australia (RBA) and the Federal Reserve to gauge the direction of future price movements for the AUD/USD.
Analyzing Technical Indicators
From a technical perspective, the AUD/USD has shown bearish signals in the short term by remaining below the 50-day Exponential Moving Average (EMA). However, the currency pair has managed to hold above the 200-day EMA, indicating a bullish sentiment in the longer term. A breakout above the 50-day EMA could potentially lead to a push towards the $0.67003 resistance level, with a further break above this level potentially opening the door to a move towards $0.67500.
It is important for investors to keep a close eye on the inflation figures released by Australia, along with the US CPI Report and central bank communications, as these factors can significantly impact the price movements of the AUD/USD pair. On the contrary, a drop below the top trend line and the 200-day EMA could signal a decline towards $0.66, with potential buying pressure expected to intensify at the top trend line level. The convergence of the 200-day EMA with the top trend line adds further significance to these key technical levels.
With a 14-period Daily Relative Strength Index (RSI) reading of 44.90, there is a possibility that the Australian dollar may dip below the 200-day EMA before entering oversold territory. Investors should remain vigilant and monitor real-time data, news updates, and expert commentary to make informed decisions regarding their trading strategies. Staying informed with the latest views and analysis is crucial in managing exposure to the forex markets effectively and navigating the potential fluctuations in the AUD/USD exchange rate.