AUDUSD Insight

Greetings to all subscribers!
Please share your personal opinions in the comments. Don't forget to like and subscribe!

Key Points
- Friedrich Merz, leader of the Christian Democratic Union (CDU) and a potential candidate for German Chancellor, held a 1.5-hour meeting with Chancellor Olaf Scholz. During the discussion, they explored ways to bypass strict national debt limits and increase defense spending.
- The U.S. February CB Consumer Confidence Index fell by 7 points from the previous month to 98.3, raising concerns about stagflation as it coincided with a sharp rise in 12-month inflation expectations.
- ECB Executive Board Member Isabel Schnabel stated, "We can no longer confidently say that our policy is restrictive."

Key Economic Events This Week
+ February 27: U.S. Q4 GDP
+ February 28: Germany February CPI, U.S. January PCE Price Index

AUDUSD Chart Analysis
As anticipated last week, after surpassing the 0.63000 level, AUDUSD climbed to the 0.64000 resistance area, where it is now facing downward pressure. If this decline is short-term, the 0.63000 level should hold. However, if it fails to do so, a further drop toward the 0.60000 level is likely.

On the other hand, if an upward move breaks through the 0.64000 level, the pair may establish a new high around 0.66000.