AUD/USD Forecast: Slightly bullish, limited while below 0.6440

Matías Salord FXStreet

AUD/USD Current Price: 0.6422

Market remains relatively quiet, awaiting US CPI.
The US Dollar Index holds near monthly highs.
The AUD/USD is moving sideways with a mildly bullish bias.

The AUD/USD experienced a slight pullback on Tuesday and traded sideways around 0.6420 throughout the day in quiet market conditions. The pair reached a low of 0.6408 but quickly rebounded to the 0.6420 area.

The AUD/USD remained relatively quiet within a narrow range as market participants awaited the release of US consumer inflation figures on Wednesday. The Consumer Price Index (CPI) is expected to show an increase in the annual rate from 3.2% to 3.6% and a decrease in the Core rate from 4.7% to 4.3%. The market is currently in a wait-and-see mode for these numbers.

No major reports are scheduled in Australia on Wednesday, with the next significant data being employment figures on Thursday. Despite the improved market sentiment, the Australian Dollar could not benefit significantly, and the momentum was limited, likely contributing to restrained the correction from Monday's gains.

The situation may change on Wednesday, with the US Dollar becoming the primary driver. Market activity could continue on pause until the release of US inflation figures.

AUD/USD short-term technical outlook

The AUD/USD is moving around the 20-day Simple Moving Average (SMA), staying away from the recent lows but with limited upside momentum. The main trend is down, but the 0.6355 zone is still holding. A break lower would call for further losses.

On the 4-hour chart, it is holding above the 20-SMA with a mildly bullish bias. A decline below 0.6400 would weaken the outlook for the Aussie. On the contrary, consolidation above 0.6440 would open the door to more gains. The MACD favors the upside, but other indicators are flat, influenced by more than 24 hours of limited price action.

Support levels: 0.6420 0.6400 0.6350

Resistance levels: 0.6445 0.6470 0.6500

View Live Chart for the AUD/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.