- Inflation data from the US confirms a rate hike tomorrow.
- The AUD/USD stays in its daily range in the early NA session.
- The US Dollar Index struggles to find direction.
After dropping to a fresh 2-day low at 0.7583 during the early trading hours of the Asian session, the AUD/USD pair was able to reverse its course and advance above the 0.76 mark following the home loans data from Australia. Since then, the pair has been in a relatively tight range above that level and was last seen trading at 0.7612, where it was up 0.04% on the day.
Earlier today, the data released by the Australian Bureau of Statistics revealed that home loans decreased by 1.4% in April after recording a 2.3% contraction in March to beat the experts’ estimate of -1.9%.
On the other hand, at the beginning of the NA session, the inflation data from the United States showed that the annual core-CPI improved to 2.2% in May from 2.1% in April and matched the market expectations. Meanwhile, the CPI rose to its highest level in nearly six years at 2.8% on a yearly basis. However, the greenback failed to take advantage of the robust data with investors remaining on the sidelines before the FOMC published the updated dot plot announces its monetary policy decision tomorrow.
Remarking her expectations from the Fed event, “If there’s a clearer consensus about how the Fed will act in the upcoming years, the greenback will receive an additional boost. A rate hike, with no changes in the dot-plot, on the contrary, would be a mild disappointment and probably benefit high-yielding assets as Aussie or the EUR. The Pound has its self Brexit woes to deal with these days and could be better to stay away from it,” Valeria Bednarik, FXStreet’s American Chief Analyst, wrote in a recently published report.
Technical outlook
The first technical support for the pair could be seen at 0.7570 (50-DMA) ahead of 0.7500 (psychological level) and 0.7475 (May 29 low). On the upside, resistances are located at 0.7625 (Jun. 8 high), 0.7675 (100-DMA) and 0.7715 (200-DMA).
Share
