AUDUSD firm ahead of AU Monthly CPI data
The AUDUSD closed at .6796 (+1.90%) last week, its highest weekly close this year, after Fed Chair Powell, speaking at Jackson Hole, validated expectations of Fed rate cuts before year-end.
This week, all eyes turn to Wednesday's AU Monthly CPI Indicator for July. The headline CPI indicator is expected to fall to 3.3% YoY, reflecting a sharp fall in energy prices following the start of the Federal government's energy rebates.
This is partly why the Australian interest rate market is confidently pricing in a 25bp of RBA rate cuts by year-end and a cumulative 73bp of cuts by May 2025.
The AUD/USD needs to break above resistance at .6800c to open up a test of the December .6871 high before the weekly trend line resistance at .6940.
This week, all eyes turn to Wednesday's AU Monthly CPI Indicator for July. The headline CPI indicator is expected to fall to 3.3% YoY, reflecting a sharp fall in energy prices following the start of the Federal government's energy rebates.
This is partly why the Australian interest rate market is confidently pricing in a 25bp of RBA rate cuts by year-end and a cumulative 73bp of cuts by May 2025.
The AUD/USD needs to break above resistance at .6800c to open up a test of the December .6871 high before the weekly trend line resistance at .6940.
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