The quarterly CPI rose by 0.6%, underperforming the expected 0.8% and the previous 1.2%. Yearly CPI figures also fell short, coming in at 3.4% against the forecasted 3.7% and preceding 4.3%, indicating tempered inflationary pressure.
The Trimmed Mean CPI, a measure that excludes volatile items, was similarly disappointed with a 0.8% rise compared to predictions of 0.9% and the prior rate of 1.2%.
Should the NFP figures exceed expectations, it could jolt investors by diminishing prospects for an early rate cut, considering the resilience of the US labour market. This potential ‘rate tantrum’ underscores the delicate balance investors are navigating amid shifting economic indicators and central bank policies.
The Australian Dollar (AUD/USD) presents a complex technical picture in today’s session. According to the green line on the four-hour chart, the pair is currently trading just below the crucial $0.65747 level.
Resistance levels above this pivot are identified at $0.6589, $0.6603, and $0.6646, each representing potential turning points for price advancement. Conversely, the currency pair finds immediate support at $0.6565, with further downside protection at $0.6524 and $0.6544, which may halt declining prices.
The Relative Strength Index (RSI) is positioned at 51.23, indicative of neutral momentum without clear directional bias. Moreover, the 50-day Exponential Moving Average (EMA) at $0.6589 offers a confluence with the pivot point, underscoring a significant technical juncture.
Concluding this technical outlook, the recommendation is to consider a bearish stance, eyeing opportunities to sell below the $0.65747 level, with a vigilant watch on the aforementioned support and resistance zones for further cues on price movement.
