AUD/USD Price Analysis: Aus Inflation Climbs to 7.3% in Nov

• Australia’s retail sales increased 1.4% from October to a record A$35.9 billion in November.

• Australia’s annual inflation re-accelerated to 7.3% in November.

• Fed Chair Jerome Powell failed to offer policy hints in his speech.

Today’s AUD/USD price analysis is bullish. The Australian dollar gained by approximately 0.3% to $0.6912 following news that the annual inflation rate jumped in November, allowing for additional rate hikes.

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Black Friday deals and online specials pushed up demand for clothing, gadgets, and furniture in November, driving up consumer spending in Australia. This was despite rising interest rates and soaring inflation.

According to ABS data released on Wednesday, retail sales increased 1.4% from October to a record A$35.9 billion ($24.7 billion) in November. That was more than double the median prediction of 0.6%

Separate ABS consumer price figures revealed annual inflation re-accelerated to 7.3% in November, following a surprising decrease to 6.9% in October, reflecting the strength of demand.

Holiday travel and lodging had a 4.3% gain in November, breaking the regular trend of reductions, which drove the monthly increase.

The trimmed mean, a frequently monitored measure of core inflation, increased to its highest level since 2018 at 5.6% annually, demonstrating the widespread nature of pricing pressure.

Strong spending and continuing inflation highlight the difficulty the Reserve Bank of Australia (RBA) faces in trying to cool the economy.

Investors are closely watching the US CPI data after Federal Reserve chair Jerome Powell failed to offer policy hints during a panel discussion in Stockholm. Other Fed officials have stated that their next moves will depend on data.

AUD/USD key events today

There won’t be any more key economic releases from the US or Australia, so the price will likely consolidate ahead of tomorrow’s inflation report.

AUD/USD technical price analysis: Bulls set to resume the uptrend.

AUD/USD is pushing higher in the 4-hour chart after finding support at the 0.6875 key level. Bulls are ahead because the price is trading above the 30-SMA and the RSI is above 50, supporting bullish momentum.

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With bulls in charge, the price will likely retest the 0.6951 resistance soon. A break above will only occur if bulls are still stronger than bears when the price gets to that level.

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