- AUD/USD stands still with the market awaiting the US Core PCE inflation figures and personal spending insights.
- Forecasts suggest a slight slowdown in Core PCE inflation for February, with personal income and spending data also in focus.
- Australian economic indicators hint at a cooling economy, increasing speculation on RBA's future rate decisions.
The Aussie Dollar remains subdued against the US Dollar on Friday due to thin liquidity conditions in the observance of Good Friday. A busy economic docket in the United States (US) might entertain Forex market traders with the release of the Personal Consumption Expenditures (PCE) price index and Federal Reserve officials' speeches. The AUD/USD trades at 0.6513, virtually unchanged.
AUD/USD traders eye US key economic data ahead of the weekend
The AUD/USD price action shows traders waiting to release the Fed’s preferred gauge for inflation, the Core PCE for February. The consensus foresees the latter slowing from 0.4% to 0.3% MoM, with annual figures expected to remain unchanged at 2.8% as in January. In the meantime, headline PCE is expected to tick higher from 0.3% to 0.4% MoM and, in the 12 months to February, rise from 2.4% to 2.5%.
Alongside that data, the US Bureau of Economic Analysis (BEA) will release Personal Income and Personal Spending data, which would shed some light on American consumer behavior. According to BBH analysts, the jump in February Retail Sales could underpin personal spending data.
On the Australia’s front, economic data revealed during the week, revealed that monthly inflation was below estimates, with Retail Sales missing forecasts. With the economy beginning to show signs of slowing down, has raised expectations for potential interest rate cuts by the Reserve Bank of Australia (RBA) toward the second half of 2024.
Next week, Aussie’s Judo Bank PMI figures, along with the RBA's latest meeting minutes, could shed some light on the economy's progress.
AUD/USD Price Analysis: Technical outlook
The AUD/SD remains neutral to downward biased. Ahead of the release of US PCE, look for stir resistance at the confluence of the 100 and the 200-day moving averages (DMAs) at 0.6546. Further upside is seen at the 100-DMA at 0.6594, ahead of 0.6600. On the flip side, first support is seen at 0.6500, followed by the March 5 low of 0.6477.
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
AUD/USD clings to recovery gains above 0.6200, focus shifts to US ISM PMI
AUD/USD sustains the recovery from two-year troughs, holding above 0.6200 in Friday's Asian trading. The pair finds footing amid a pause in the US Dollar advance but the upside appears elusive as markets turn cautious amid China concerns and ahead of US ISM PMI data.
USD/JPY eases toward 157.00 as risk sentiment sours
USD/JPY is extending pullback from multi-month high of 158.07 set on Thursday. The pair drops toward 157.00 in the Asian session on Friday, courtesy of the negative shift in risk sentiment. Markets remain concerned about China's econmic health and the upcoming policies by the Fed and the BoJ.
Gold price holds ground due to safe-haven demand amid rising tensions in Middle East
Gold price edges higher for the fourth consecutive session on Friday, building on a stellar performance in 2024 with gains exceeding 27%, the metal’s best annual return since 2010. This sustained rally is attributed to strong safe-haven demand amid persistent geopolitical tensions in the Middle East and the prolonged Russia-Ukraine conflict.
Could XRP surge to new highs in January 2025? First two days of trading suggest an upside bias
Ripple's XRP is up 7% on Thursday, extending its rally that began during the New Year's Day celebration. If long-term holders continue their recent accumulation, XRP could overcome the $2.9 resistance level and aim for a new all-time high.
Three Fundamentals: Year-end flows, Jobless Claims and ISM Manufacturing PMI stand out Premium
Money managers may adjust their portfolios ahead of the year-end. Weekly US Jobless Claims serve as the first meaningful release in 2025. The ISM Manufacturing PMI provides an initial indication ahead of Nonfarm Payrolls.
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.