Australian dollar to rise near a significant level.
Wednesday marked the third day in a row that the Australian Dollar (AUD) increased in value. Because of the hawkish remarks made by Reserve Bank of Australia (RBA) Governor Michelle Bullock. The AUDUSD pair is supported upward.
In Q3, Australia’s CPI increased to 1.2%, above the 1.1% market estimate.
The third quarter of 2023 saw growth in the Consumer Price Index (CPI). Exceeding the increase seen in the second quarter. According to a report released on Wednesday by Australia’s Bureau of Statistics (ABS).
The Chief Policymaker of Australia spoke at the Commonwealth Bank. Emphasised the commitment to reaching the inflation objective in a reasonable amount of time during the Australia Global Markets Conference in Sydney on Tuesday.
Governor Bullock acknowledged the risks associated with inflation returning to target more slowly than anticipated. But he also suggested that the current cash rate may accomplish this objective. The board is willing to raise rates in the event that the inflation outlook is significantly revised upward, and it has a limited tolerance for such deviations.
On Thursday, when RBA Governor Bullock appears before the Senate Economics Legislative Committee in Canberra, investors will be intently watching what she has to say about the state of the Australian economy.
Positive US PMI data helped to drive up the value of the US dollar.
After cutting recent losses, the US Dollar Index (DXY) consolidates on the strength of positive preliminary S&P Global PMI data fromreleased on Tuesday in the United States. Nonetheless, the US Dollar (USD) may face downward pressure as a result of the decline in US Treasury yields.
Concerns over the possible detrimental effects of tighter monetary policy and higher borrowing costs on investment and industrial activity have subsided, according to US economic data.
Australian Dollar Technical Outlook
The Australian dollar is circling about 0.6400, below the key resistance.
On Wednesday, the Australian dollar is trading near 0.6390, which is in line with the significant resistance level at 0.6400. A break over this resistance might take the price up to around 0.6429, the 23.6% Fibonacci retracement level. On the downside, the monthly low at 0.6285 and the 0.6300 significant level follow the seven-day Exponential Moving Average (EMA) at 0.6353 as the immediate support.
