AUDUSD Chart Technical Outlook set to resume rise toward 0.6667 on US CPI
All eyes are on US inflation figures – and they will likely meet the Federal Reserve’s expectations of further softness. Fed Chair Jerome Powell only wants to see more of the same, not weaker figures. An increase of 0.3% in Core CPI MoM would be enough to keep markets happy.
When stocks are on the rise, so does the Australian Dollar. The Aussie has already been edging higher in March, and a not-too-disastrous CPI report would be sufficient to push AUD/USD up.
What about Australia? The NAB Business Confidence slipped from 1 to 0, but that is a third-tier indicator. There has been no news from China, so doubts about the world’s second-largest economy’s growth are already priced.
AUD/USD faces weak resistance at 0.6625, and the more significant line is at 0.6667. Support awaits at 0.6596, followed by 0.6558. The 4h-50 SMA has crossed the 4h-200 SMA to the upside, adding to the bullish case.
