In the Asian session, the AUDUSD pair is trading in a narrow range around 0.6680. The Australian dollar was unchanged on Wednesday. After the monthly Australian Consumer Price Index (CPI) fell further to 6.8% from 7.4% in the previous release and 8.4% in December.
A second consecutive decline in Australian CPI has boosted hopes for a pause in the RBA’s rate-hiking cycle.
A second consecutive decline in Australian inflation has raised hopes for a pause in the Reserve Bank of Australia’s rate-hiking cycle (RBA). According to ANZ Bank economists. “While the RBA has signaled its intention to pause at some point in the coming months. We continue to believe that the data is not yet consistent with a pause.”
Meanwhile, after a super bullish Wednesday. S&P500 futures are showing nominal losses. Portraying mild pessimism in the overall positive market mood. The US Dollar Index (DXY) is looking to resume its upward trend after finding support near 102.60.
AUDUSD Technical Outlook
On an hourly basis, the AUDUSD is indicating a long period of consolidation. A breakdown of the previously mentioned chart pattern leads to a bearish reversal. The chart pattern’s neckline is drawn from the March 29 low of 0.6661.
The asset has fallen below the 50-period Exponential Moving Average (EMA) at 0.6682. Indicating a bearish short-term trend.
Meanwhile, the Relative Strength Index (RSI) (14) is fluctuating between 40.00 and 60.00. The downside momentum will be triggered by a break into the bearish range of 20.00-40.00.
Furthermore A drop below the March 29 low at 0.6661. The asset will be dragged towards the March 24 low of 0.6625 and the March 15 low of 0.6564.
If the asset breaks above the March 13 high of 0.6717. Aussie bulls will push it higher towards the March 07 high of 0.67478. Followed by the horizontal resistance plotted from the February 23 low of 0.6781.
