AUD/USD finds some support above the 0.6500 mark, Australian CPI data eyed
|- AUD/USD trades on a weaker note near 0.6512 in Monday’s early Asian session.
- Fed’s Powell said officials want to feel more confident that inflation is headed toward the central bank’s 2% target before cutting the rates.
- The further positive development surrounding Chinese macro policy could lift the Aussie.
- The Australian February CPI inflation data and US Q4 GDP numbers will be in the spotlight this week.
The AUD/USD pair finds some support above the 0.6500 mark during the early Asian session on Monday. The pair edges lower amid the further gains of the US Dollar (USD). Investors will monitor the Australian monthly Consumer Price Index (CPI) for February and the US Gross Domestic Product (GDP) for the fourth quarter. At the press time, AUD/USD is trading at 0.6512, losing 0.03% on the day.
The US Federal Reserve (Fed) policymakers indicated that they will be in a position to cut interest rates when they have confidence that inflation is progressing towards the 2.0% target. The Fed Chair Jerome Powell said during the press conference that a surprise increase in unemployment could prompt the Fed to lower rates. The Fed also stuck with its earlier forecast for three rate cuts before the year's end based on its dot plot.
On the other hand, China's Premier Li Qiang said on Sunday that the nation’s low inflation and low central government debt ratio means there is ample room for macro policy. The Chinese government will issue ultralong special treasury bonds worth one trillion yuan, which will effectively support investment and stabilize economic growth. Furthermore, the Chinese authorities will work to prevent system risks and push for long-term and healthy development of China's economy. The further positive development surrounding Chinese stimulus measures and macro policy could boost the China-proxy Australian Dollar (AUD) against the Greenback.
Market players, we will keep an eye on the Australian CPI inflation data on Wednesday, which is expected to show an increase of 3.6% YoY February from 3.4% in the previous reading. On Thursday, the Australian February Retail Sales and the US GDP growth numbers for Q4 will be released. Traders will take cues from these events and find trading opportunities around the AUD/USD pair ahead of the Good Friday holiday on Friday.
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