The AUDUSD bulls are on course to break through the cycle highs.

AUDUSD remains steady at 0.7100 in a calm Asian start to Thursday, following a more exciting Wednesday that saw the AUDUSD climb within a 160 pip range from a low of 0.7082 to a high of 0.7108.”Aussie has subsequently reclaimed its status as the best-performing G10 currency in the year . just days after a softer-than-expected Australian labor data knocked it off the pedestal,” Rabobank analysts said. “We continue to expect the AUD to outperform the USD this year. The G10 currency basket. “However, we anticipate a drop in the value of the AUDUSD towards the middle of the year,” the experts stated. “This is connected to   that the market would price in a Fed rate decrease before the end of 2023.”

Market has slowed as  anticipate more crucial data from the US economic.

Nonetheless, the market has slowed as we anticipate more crucial data from the US economic calendar for the day ahead. Following yesterday’s inflation figures for the Australian economy, which came in hotter than expected, traders will be rolling up their sleeves as a barrage of US numbers hit the screens at the start of the day. The US Commerce Department is slated to issue preliminary fourth-quarter GDP figures at the same time as the nation’s Prices for core PCE will be released.

Analysts  predict that growth will accelerate to a 0.3% MoM pace in December, however a 0.4% increase cannot be ruled out. “The year-on-year pace is likely to have slowed to 4.5%, indicating that prices continue to moderate but remain sticky at high levels,” the experts contended. “We also expect Gross Domestic Product growth to have remained solid in Q4, producing another above-trend rise,” the analyst added of the growth statistics.

Consumer and inventory performance were likely supportive to growth.” WIRP implies that a Federal Reserve interest rate rise of 25 basis points on February 1 is completely priced in, with less than a 5% chance of a greater 50 basis point move. Another 25 basis point boost on March 22 is around 80% priced in, whereas a previous 25 basis point hike in Q2 is only 35% priced in.

The sentiment has weighed on the greenback, supporting the AUD/USD as it advanced towards new cycle highs set on the basis of yesterday’s CPI data. The December CPI inflation rate increased 8.4% year on year, raising the Q4 headline CPI inflation rate to 7.8% year on year from 7.3% year on year the previous quarter.