- The Australian Dollar has surged past the critical 0.6600 mark, reaching new three-week highs, signaling strong momentum in the currency pair.
- Traders are closely watching the upcoming Consumer Inflation Expectations and Australian labor market report on August 15, as well as the U.S. Consumer Price Index (CPI) and retail sales data, which are likely to influence the Federal Reserve’s next policy move and the direction of the U.S. dollar.
The AUD/USD extended its rally passed the critical 0.6600 mark to hit new three-week highs. Traders now turn their attention to the upcoming Australian Consumer Inflation Expectations and Unemployment.
The pair faces immediate resistance at the 200-day moving average, followed by the 0.668 level. On the downside, initial support could be the 100-day moving average, with further backing at the 50-day moving average.
In the U.S., the spotlight shifts to the July Consumer Price Index (CPI) due Wednesday.
Earlier today, the Producer Price Index (PPI) data showed a 2.2% year-over-year increase for July, down from the 2.7% rise in June. PPI often acts as an early indicator for upcoming CPI inflation.
Market participants are currently pricing in a roughly 54% chance of a 50-basis-point Fed rate cut in September, a probability that could increase following the PPI data.
