AUD/USD Surges as US Inflation Cools, Setting for Bullish Cont

30 Jun

AUD/USD Surges to 0.6670 as US Inflation Cools, Setting the Stage for Bullish Continuation

The AUD/USD pair has jumped higher to 0.6670 following an expected cooling in US inflation. This move aligns with our technical analysis, which anticipated a potential rebound in the Fibonacci retracement area, triggering a new bullish impulse. We also observed a divergence on the RSI within the H4 timeframe, which is situated inside a bullish channel.

The decline in US inflation data is expected to spur expectations for early rate cuts by the Federal Reserve (Fed), creating an unfavorable scenario for the US Dollar. Consequently, the US Dollar Index (DXY) has turned negative, dropping to 105.80.

According to the CME FedWatch tool, the central bank sees the September meeting as the earliest point for pivoting to policy normalization. The tool indicates that the Fed is expected to deliver two rate cuts this year. However, contrary to market expectations, Fed officials have forecasted only one rate cut this year.

Considering all the data and analysis, we are anticipating a possible bullish continuation for the AUD/USD pair.


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1 Jul

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