Audusd drops amid anticipation of us economic data releases

AUDUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	-0.39%	-26.3 Pips
Week to-date	-2.56%	-177.1 Pips
October	-2.52%	-174.1 Pips

Upcoming key events (London Time)

Wed 07:00 PM USD FOMC Meeting Minutes
Thu 01:30 PM USD CPI Inflation Rate (12-mth)

What happened lately

Australia’s TD Securities Inflation has shown a slight increase in September, recording a rate of 2.6%, compared to 2.5% in August. This uptick in inflation suggests that price pressures in the Australian economy are continuing to build, albeit incrementally. The inflation data is a key indicator of economic health, reflecting the rate at which the country’s cost of living is rising. Increases in inflation can influence the Reserve Bank of Australia’s monetary policy decisions, potentially leading to adjustments in interest rates if inflation continues to rise above targeted levels.

The Australian Dollar to US Dollar exchange rate (AUDUSD) witnessed a decline of 0.39% on Tuesday, settling at 0.67413. This depreciation of the Australian Dollar could be attributed to several factors, including market anticipation of upcoming US economic data releases that hold potential to sway investor sentiment. Reports from high-impact economic events in the US, such as the FOMC Meeting Minutes and the US CPI Inflation Rate, are scheduled for release. These upcoming reports might have already started to exert influence on forex markets, leading to the recent downtrend in AUDUSD.

The marginal increase in Australia’s inflation data may have a minimal direct impact on the AUDUSD pair in the short term, as forex markets are typically more sensitive to US economic indicators. The focus seems to be on upcoming US reports, which have a higher perceived market impact. The FOMC Meeting Minutes and the US CPI Inflation Rate are key events that could provide insights into the Federal Reserve’s monetary policy stance. If these reports indicate rising inflation pressures in the US, it could strengthen USD further against the AUD, exacerbating the recent downturn in the exchange rate. Conversely, if the reports suggest weaker inflation or an accommodative Federal Reserve stance, it could lead to a recovery in demand for AUD, potentially appreciating the currency against its US counterpart.

Latest from X (Twitter)

Tweets by Australian Bureau of Statistics

What can we expect from AUDUSD today?

AUDUSD on Tuesday dropped -0.39% to 0.67413. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for AUDUSD looks bearish as the pair posted lower in Tuesday trading session.

Looking ahead for the day, immediate support level is at S1 0.67142 with break below could see further selling pressure towards S2 at 0.66871. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 0.67692 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 0.67146 would indicate selling pressure.

For the week to-date, take note that AUDUSD is bearish as the pair posted lower by -2.56%.

Key levels to watch out:

#AUDUSD Trending on Twitter

[custom-twitter-feeds hashtag=”#AUDUSD” num=3 showheader=false]