AUD/USD Rises Sharply on Inflation News


The Consumer Price Index for Australia was released this morning. According to ForexFactory:

→ CPI in quarterly terms: actual = 1.0%, expected = 0.8%, previous value = 0.6%;
→ CPI in annual terms: actual = 3.5%, expected = 3.4%, previous value = 3.4%.

Rising inflation figures suggest that the Reserve Bank of Australia's tight monetary policy may continue beyond expectations - which is why the Australian dollar has jumped higher relative to other currencies.

Thus, from the minimum of the year against the US dollar, recorded on April 19, the Ausssie rose in price by more than 2%.

Technical analysis of the AUD/USD chart today shows that:
→ the price has reached the median of the ascending channel. Previously, this line served as support (as shown by the arrows), so there is reason to believe that it will provide resistance after rapid growth;
→ at the same time, the key support appears to be the level of 0.64, where the lower border of the channel lies;
→ the RSI indicator is in the overbought zone.

It is possible that in the short term there will be a correction after a sharp increase in the price of AUD/USD — for example, by 50% of the A→B impulse.

And to assess the long-term outlook, the upcoming release of important data for the United States will provide valuable information:
→ US GDP, tomorrow at 15:30 GMT+3
→ Personal Consumption Expenditures (PCE) USA, on Friday at 15:30 GMT+3.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

GBP/JPY at Highest Level in Over 15 Years The Dollar Resumes Growth After a Corrective Pullback Market Analysis: EUR/USD Slips as USD/CHF Targets Upside Break USD/JPY Analysis: The Market is Indecisive Near Its Peak Since May 1 European Currencies Testing Key Levels: Contributing Factors

Latest articles

Forex Analysis

GBP/JPY at Highest Level in Over 15 Years

As shown by today's GBP/JPY chart, the exchange rate has not only surpassed the psychological level of 200 yen per pound but has also exceeded the peak of 29 April 2024. The market is now experiencing prices last seen


Elon Musk Contributes to NVDA Price Surge to a New Record

Yesterday, on Tuesday, Nvidia's stock price reached a historic high, surpassing the $1,130 mark, increasing by almost 7% relative to Monday's closing price. This happened after a turbulent past week, during which Nvidia published a very strong report that

What Is a Falling Knife in Trading?
Trader’s Tools

What Is a Falling Knife in Trading?

It’s often repeated that traders should ‘never catch a falling knife.’ This phrase highlights the risks of buying into a rapidly declining asset. Understanding what a falling knife is, its causes, and strategies for trading it may help traders

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.