AUD/USD extends its upside to 0.6620 after US PPI report, US Inflation in focus

Source Fxstreet
May 14, 2024 13:43
  • AUD/USD moves higher to 0.6620 amid cheerful market mood and a decline in the US Dollar.
  • Stubborn US PPI data fails to boost the US Dollar’s appeal.
  • Economists expect that Australia’s Wage Price Index grew steadily in Q1 of this year.

The AUD/USD pair rises further to 0.6620 in Tuesday’s New York session. The Aussie asset strengthens as the US Dollar comes under pressure even though the United States Producer Price Index (PPI) report for April has turned out slightly hot. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, falls to near the crucial support of 105.00.

Annual headline, and the core PPI data that strips off volatile food and energy prices grew in line with estimates of 2.2% and 2.4%. Monthly headline and core PPI rose strongly by 0.5%, beat the consensus and prior readings. Higher prices by business owners are majorly the outcome of rising input prices or robust household spending or a mix of both.

A large uptick in the producer inflation exhibits signs of persistent price pressures, which could negatively influence speculation for rate cuts by the Federal Reserve (Fed), for which financial markets expect that the September meeting will be the earliest point.

Meanwhile, the market sentiment is positive as investors shrugged off uncertainty of the US Consumer Price Index (CPI) data for April, releasing on Wednesday. The S&P 500 opens on a slightly bullish note. The US inflation data has remained hotter-than-expected in the first quarter of this year. A similar set of numbers would dent Fed rate-cut prospects for the entire year.

On the Australian Dollar front, investors await the Q1 Wage Price Index data, which will be published on Wednesday. Quarterly and annual wage inflation data is forecasted to have grown steadily by 0.9% and 4.2%, respectively. Persistent wage growth data would flare up upside risks to inflation, which would force the Reserve Bank of Australia (RBA) to maintain a restrictive interest rate framework for a longer period.

AUD/USD

Overview
Today last price 0.6617
Today Daily Change 0.0009
Today Daily Change % 0.14
Today daily open 0.6608
 
Trends
Daily SMA20 0.6527
Daily SMA50 0.6543
Daily SMA100 0.6573
Daily SMA200 0.6522
 
Levels
Previous Daily High 0.6629
Previous Daily Low 0.6586
Previous Weekly High 0.6638
Previous Weekly Low 0.6558
Previous Monthly High 0.6644
Previous Monthly Low 0.6362
Daily Fibonacci 38.2% 0.6612
Daily Fibonacci 61.8% 0.6602
Daily Pivot Point S1 0.6586
Daily Pivot Point S2 0.6564
Daily Pivot Point S3 0.6543
Daily Pivot Point R1 0.6629
Daily Pivot Point R2 0.6651
Daily Pivot Point R3 0.6672

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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