AUDUSD 27.05.2024
Macroeconomic News:
The Australian Dollar (AUD) continued to appreciate on Monday, driven by improved market sentiment following a slight decrease in the University of Michigan's (UoM) 5-year inflation expectations on Friday. The weaker USD, resulting from the UoM's 5-year inflation expectations dropping to 3.0%, below the forecasted 3.1%, supported the AUD. Investors are now awaiting Australia's monthly Consumer Price Index (CPI) report on Wednesday for further insights into domestic monetary policy. The Reserve Bank of Australia's (RBA) meeting minutes highlighted the difficulty in predicting rate changes, noting that inflation might remain above the 2-3% target for an extended period.
Technical Analysis:
The Australian Dollar traded around 0.6630 on Monday. The 14-day Relative Strength Index (RSI) is above 50, indicating a bullish trend. On the daily chart, the AUD/USD pair is testing the lower boundary of an ascending wedge pattern. Immediate resistance is at the 9-day Exponential Moving Average (EMA) at 0.6634 and the lower boundary of the ascending wedge. If the pair breaks above this level, it could test the four-month high at 0.6714 and the upper boundary of the ascending triangle around 0.6730. Psychological support is at 0.6600, followed by the key level at 0.6550; if the pair declines further, it may target the support zone at 0.6470.
The Australian Dollar (AUD) continued to appreciate on Monday, driven by improved market sentiment following a slight decrease in the University of Michigan's (UoM) 5-year inflation expectations on Friday. The weaker USD, resulting from the UoM's 5-year inflation expectations dropping to 3.0%, below the forecasted 3.1%, supported the AUD. Investors are now awaiting Australia's monthly Consumer Price Index (CPI) report on Wednesday for further insights into domestic monetary policy. The Reserve Bank of Australia's (RBA) meeting minutes highlighted the difficulty in predicting rate changes, noting that inflation might remain above the 2-3% target for an extended period.
Technical Analysis:
The Australian Dollar traded around 0.6630 on Monday. The 14-day Relative Strength Index (RSI) is above 50, indicating a bullish trend. On the daily chart, the AUD/USD pair is testing the lower boundary of an ascending wedge pattern. Immediate resistance is at the 9-day Exponential Moving Average (EMA) at 0.6634 and the lower boundary of the ascending wedge. If the pair breaks above this level, it could test the four-month high at 0.6714 and the upper boundary of the ascending triangle around 0.6730. Psychological support is at 0.6600, followed by the key level at 0.6550; if the pair declines further, it may target the support zone at 0.6470.
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