- The AUD/USD jumped to 0.6375, seeing 0.30% gains
- The US will report US CPI figures from October on Tuesday.
- The Australian Consumer Confidence Index from November is also due on Tuesday.
The AUD/USD gathered momentum on Monday, trading at the 0.6375 level, with 0.30% gains, and the pair's price dynamics were set by a soft US Dollar, which seems to be consolidating last week’s gains.
After the Federal Reserve’s hawkish rhetoric gained relevance last week, the Greenback recovered, and now investors are awaiting inflation figures from October to continue placing bets on the next Fed decisions. The Consumer Price Index (CPI) from the US, is expected to have declined to 3.3% YoY from the previous 3.7%, while the Core measure is expected to have stagnated at 4.1% YoY.
It is worth noticing that Fed officials were seen as not satisfied with the progress made on inflation and claimed to need further evidence to declare that the job is done. In that sense, the outcome of the inflation figures may set the pace for the Greenback’s price dynamics for the next sessions as they will model the expectations for the next December meeting of the Fed. Elsewhere, the US government bond yields are rising. The 2-year rate stands at 5.07%, and the 5 and 10-year yields are seen at 4.70% and 4.67%, respectively, which seems to limit the USD's losses.
AUD/USD levels to watch
The daily chart suggests that the AUD/USD has a neutral to bullish technical bias as the bears step back to consolidate after five consecutive days of losses. The Relative Strength Index (RSI) signals a potential reversal as it exhibits a positive slope below its midline, while the Moving Average Convergence (MACD) presents weaker green bars.
In the larger context, the pair is above the 20-day Simple Moving Average (SMA), but below the 100 and 200-day SMAs, indicating that the bears are still holding some dominance over the bulls on the broader time horizon. However, the short-term outlook will remain positive if the bulls gather further ground and hold above the 20-day SMA.
Supports: 0.6373 (20-day SMA), 0.6350, 0.6300
Resistances: 0.6400, 0.6450, 0.6470.
AUD/USD daily chart
-638354880331849362.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.