The AUD/USD pair is currently on the rise, inching towards 0.6552 on Monday. This comes after the Australian dollar recently hit a 12-week low, experiencing a more than 3% drop in the past two weeks due to a global sell-off in risky assets and weak reports from China. Investors are eagerly awaiting the Australian inflation data, which is expected to be released this week. This data will play a significant role in determining the future course of action for the Reserve Bank of Australia.
The upcoming release of inflation statistics in Australia for Q2 2024 is poised to have a notable impact on the currency pair. Market analysts predict a slight acceleration in inflation, with a possible 1.0% quarter-on-quarter increase in April-June. Additionally, on an annualized basis, inflation could rise to 3.8% from the previous 3.6%. These figures will be closely watched by investors and traders alike, as they provide insights into the health of the Australian economy.
This week, Australia’s macroeconomic calendar is set to be quite active, with reports on various economic indicators such as retail sales, trade balance, exports, imports, and the producer price index scheduled for release. The stronger these data points, the more positive the outlook for the economy, especially given China’s economic slowdown. Australia’s main economic partner. Amidst all these uncertainties, it is crucial for market participants to remain resilient and adapt to changing conditions.
Looking at the technical analysis of the AUD/USD pair, on the H4 chart, the market recently experienced a wave of decline to 0.6513. However, there is a possibility of a correction to the level of 0.6609 before considering a continuation of the downtrend to 0.6468 and potentially 0.6420. This scenario is backed by the MACD indicator, which indicates a downward trend.
On the H1 chart, the market is currently consolidating around the level of 0.6561. An upward breakout could lead to a wave towards 0.6609, while a downward exit may see a continuation of the downtrend to 0.6468. The Stochastic oscillator supports this view with its downward trend signal below 50 towards 20.
The AUD/USD pair remains volatile and sensitive to economic data releases and global market conditions. Traders and investors should closely monitor these factors to make informed decisions and navigate through the current market environment.