AUD/USD consolidates above the 0.6700 mark ahead of Australian Retail Sales data

Share:
  • AUD/USD oscillates in a narrow trading band around 0.6719 on Tuesday.
  • The markets have priced in a 50% possibility of a rate cut in the March meeting.
  • Australian Retail Sales for November are projected to rise 1.2% versus -0.2% prior.

The AUD/USD pair consolidates above the 0.6700 mark during the early Asian session on Tuesday. The speculation that the Federal Reserve (Fed) may not cut their policy rate as quickly as previously expected lends some support to the US Dollar (USD) and weighs on the pair. Investors await the US Consumer Price Index (CPI) data later this week for the near-term catalysts. At press time, AUD/USD is trading at 0.6719, gaining 0.01% on the day.

The US core Consumer Price Index (CPI) is expected to rise 0.2% MoM in December, although energy price volatility poses downside risks. The headline CPI figures for December are estimated to show an increase of 0.2% MoM and 3.2% YoY, respectively.

The Fed Chair Powell recently highlighted inflation progress throughout 2023, fueling speculation that the FOMC may shortly consider cutting interest rates. On Monday, Fed Governor Michelle Bowman said that she now sees US monetary policy as sufficiently restrictive and signaled her willingness to support eventual interest-rate cuts as inflation eases. Expectations for an early rate cut from the FOMC are high with the market pricing in a 50% odds of a March rate cut, according to the CME Group.

On the Aussie front, the Australian Retail Sales for November will be due later on Tuesday. The figure is projected to rise 1.2% from a 0.2% drop in the previous reading. The report could influence the Reserve Bank of Australia (RBA) to maintain interest rates high for longer.

 

AUD/USD

Overview
Today last price 0.672
Today Daily Change 0.0004
Today Daily Change % 0.06
Today daily open 0.6716
 
Trends
Daily SMA20 0.6741
Daily SMA50 0.6603
Daily SMA100 0.6499
Daily SMA200 0.6584
 
Levels
Previous Daily High 0.6748
Previous Daily Low 0.6641
Previous Weekly High 0.6839
Previous Weekly Low 0.6641
Previous Monthly High 0.6871
Previous Monthly Low 0.6526
Daily Fibonacci 38.2% 0.6707
Daily Fibonacci 61.8% 0.6682
Daily Pivot Point S1 0.6655
Daily Pivot Point S2 0.6594
Daily Pivot Point S3 0.6547
Daily Pivot Point R1 0.6762
Daily Pivot Point R2 0.6809
Daily Pivot Point R3 0.687

 

 

Share: Feed news