AUD/USD recovers from drop to 0.6575 but still in the red on Tuesday

Source Fxstreet
  • AUD/USD fell into familiar lows after a rejection from 0.6625.
  • The Aussie found a floor near 0.6575, but upside momentum remains thin.
  • Australian CPI inflation in the pipe ahead of Wednesday’s Fed rate call.

AUD/USD is cycling the 0.6600 handle in a rough range as Aussie (AUD) traders gear up for Australian Consumer Price Index (CPI) inflation due during the early Wednesday session ahead of another rate cal from the US Federal Reserve (Fed).

Australia’s fourth-quarter CPI is expected to contract slightly on an annualized basis, with the headline YoY CPI forecast to print at 4.3% versus the previous 5.4% and the QoQ data expected to slip to 0.8% from 1.2%.

On the Fed side, markets are awaiting a pivot from Fed chairman Jerome Powell. Rate swap markets have seen their rate cut bets steadily pushed further out, and the CME’s FedWatch Tool now sees a less than 40% chance of a first rate cut from the Fed in March. Swaps originally priced in an over 80% chance of a March rate trim back in December, but easing inflation and stubbornly strong economic data from the US over the last quarter renders a rate cut from the Fed next to impossible for fear of re-stoking inflationary pressure.

The back half of the trading week will cap off with China’s Caixin Manufacturing Purchasing Managers’ Index (PMI) figure expected to tick down slightly from 50.8 to 50.6, and broader markets will be looking for a softer print in Friday’s US Nonfarm Payrolls. Friday’s NFP is forecast to tick down to 180K for January from December’s 216K.

AUD/USD technical outlook

The AUD/USD reclaimed the 0.6600 handle on Tuesday after a near-term dip into 0.6575, and the pair is catching intraday technical support from the 200-hour Simple Moving Average (SMA) near 0.6590.

The Aussie continues to catch technical support from the 200-day SMA just above 0.6550 on the daily candlesticks. The pair is still caught in a congestion pattern below the 50-day SMA just above 0.6650.

AUD/USD hourly chart

AUD/USD daily chart

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
US August CPI lands tonight: after a 5.4% PPI shock, will the Fed hike on September 16?US August PPI came in at 5.4% year-on-year, above the 5.3% consensus, with core PPI at 4.6%. Traders have pushed the odds of a 25bp Fed hike on September 15-16 to around 70%. Tonight's CPI is the last major inflation print before the decision — here is the full calendar, the consensus numbers, and what a hot versus cool reading would mean for the dollar, yields, gold and stocks.
Author  Irene Q.
Sep 11, Fri
US August PPI came in at 5.4% year-on-year, above the 5.3% consensus, with core PPI at 4.6%. Traders have pushed the odds of a 25bp Fed hike on September 15-16 to around 70%. Tonight's CPI is the last major inflation print before the decision — here is the full calendar, the consensus numbers, and what a hot versus cool reading would mean for the dollar, yields, gold and stocks.
placeholder
Brent tests $108 as a key export pipeline stays shut — can the rally clear $110?Brent crude rose 2.55% to $106.97 and WTI 2.32% to $102.30 as a major regional export pipeline remained offline with no restart timeline. Front-month backwardation has widened to $5.53 from $3.84 a week ago, European gas is at its highest since December 2022, and one analyst sees $119.48 if talks stall.
Author  Irene Q.
Sep 14, Mon
Brent crude rose 2.55% to $106.97 and WTI 2.32% to $102.30 as a major regional export pipeline remained offline with no restart timeline. Front-month backwardation has widened to $5.53 from $3.84 a week ago, European gas is at its highest since December 2022, and one analyst sees $119.48 if talks stall.
placeholder
Fed hike odds near 90% into Wednesday's decision — how to trade the dollar, gold and the S&P 500A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
Author  Suzie
Sep 14, Mon
A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
placeholder
Gold falls below $4,300 as higher US yields bolster Fed rate hike betsGold price (XAU/USD) tumbles to near $4,295 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising bond yields and surging energy prices strengthen expectations that the US Federal Reserve (Fed) will raise interest rates this week. 
Author  FXStreet
Yesterday 01: 23
Gold price (XAU/USD) tumbles to near $4,295 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising bond yields and surging energy prices strengthen expectations that the US Federal Reserve (Fed) will raise interest rates this week. 
placeholder
【Daily Brief】10-year Treasury yield briefly tops 5%, S&P 500 slips to 7,602 and the dollar firms at 99.3 as the Fed's decision eve beginsThe 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
Author  Irene Q.
22 hours ago
The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
Related Instrument
goTop
quote