AUD/USD extends its upside above 0.6650 on softer US Dollar, Investors await Australian GDP data

Source Fxstreet
Jun 2, 2024 23:10
  • AUD/USD trades in positive territory for the third consecutive day around 0.6655 on Monday. 
  • The US PCE index rose 0.3% MoM in April, matching the expectation. 
  • The Australian monthly CPI inflation triggered the speculation that the RBA might need to hike again to curb the inflationary pressure. 

The AUD/USD pair extends the rally near 0.6655 during the early Asian session on Monday. The uptick of the pair is bolstered by the weaker US Dollar (USD) after the US Personal Consumption Expenditure Price Index (PCE) report showed that inflation cooled faster than expected in April. Investors will shift their attention to Australia’s Gross Domestic Product (GDP) for Q1 on Wednesday and the US Nonfarm Payrolls on Friday. 

The US PCE index, the Fed’s preferred measure of underlying US inflation, rose 0.3% MoM in April, matching the expectation, the Commerce Department reported on Friday. On an annual basis, the PCE figure increases by 2.7% YoY, compared to an advance of 2.7% in March. The Core PCE, excluding the volatile food and energy, climbed 0.2% MoM in April as compared to a 0.3% gain in March. On an annual basis, the core PCE price index jumped 2.8% for the third consecutive month. 

The April US PCE inflation data indicated inflation in the US remains stubbornly high as in March, raising doubt on how soon it will be able to cut interest rates. Traders were not pricing in rate cuts for the Fed’s June or July meeting, seeing a 50% odds of Fed rate cuts in September, according to the CME FedWatch tool. Fed officials emphasized that they would wait for more evidence that inflation is easing before moving to cut rates and that patience would be needed. Nonetheless, the higher-for-longer US rate narrative might support the Greenback and cap the upside for the pair in the near term. 

On the other hand, the Australian Dollar (AUD) attracts some buyers as the monthly inflation rate rose to 3.6%, triggering speculation that the Reserve Bank of Australia (RBA) might need to hike interest rates again. Australia’s monthly Consumer Price Index (CPI) rose 3.6% YoY in April, beating the estimation of 3.4% and the previous reading of 3.5%.

AUD/USD

Overview
Today last price 0.6654
Today Daily Change 0.0001
Today Daily Change % 0.02
Today daily open 0.6653
 
Trends
Daily SMA20 0.6636
Daily SMA50 0.6564
Daily SMA100 0.6559
Daily SMA200 0.6536
 
Levels
Previous Daily High 0.6673
Previous Daily Low 0.6627
Previous Weekly High 0.668
Previous Weekly Low 0.6591
Previous Monthly High 0.6714
Previous Monthly Low 0.6465
Daily Fibonacci 38.2% 0.6655
Daily Fibonacci 61.8% 0.6644
Daily Pivot Point S1 0.6629
Daily Pivot Point S2 0.6605
Daily Pivot Point S3 0.6583
Daily Pivot Point R1 0.6675
Daily Pivot Point R2 0.6697
Daily Pivot Point R3 0.6721

 

 

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