Audusd Trades High On Au Cpi

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Audusd Trades High On Au Cpi

Aud/Usd Trades Near 0.6800 Post Australian Cpi

AUD/USD continues to receive bids and trades with a resistance of nearly 0.6800, turning it into support. The recent boost in the AUD/USD comes after the release of the Australian CPI, which showed a decline in the disinflation process.

Australian CPI for July 2024 was hotter than the forecast and thus has increased the chances of a hawkish RBA stance. Meanwhile, the US Dollar has also staged a modest rebound which has kept a cap on the AUD/USD upside.

Aud Faces Tough Resistance At 0.6800

Any more gains in the AUD/USD will allow the pair to cross the 0.6798 - 0.6800 area which is the high from 23rd August. Once this hurdle is cleared by Aussie, the next pit stop for AUD/USD will be 0.6871.

And if the bears send the AUD/USD lower, the first stop will be 55 SMA, hovering near 0.6652, followed by 200 SMA at 0.6609. Beyond these two support levels, the next pit stop for AUD/USD will be 0.6347 which is the low from 2024.

If we move lower to the H4 chart, it also shows that AUD/USD is going through a period of consolidation. On the H4 chart, the first resistance is at 0.6798, and then the next one is at 0.6871. On the other hand, the first support is 0.6697, followed by the next at 0.6637, where the 200 SMA is present.

Similarly, the H4 chart shows an RSI reading of 61, which is a sign that AUD bulls remain in control. The bottom line is that AUD/USD has once again run out of steam near 0.6800 and is now looking for fresh impetus.

However, the upward momentum in AUD/USD remains strong as long as it trades above 200 SMA, at around 0.6609. In other words, as long as AUD/USD trades above 0.6609, the bulls will remain in control.

AUD/USD has managed to close the last three weeks in green, which is a sign of broader weakness in the US dollar. At the same time, the Australian CPI was hotter than expected, adding fuel to the AUD.

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