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AUD/USD wavers near 0.6400, focus on China inflation

  • The AUD/USD pair is trading sideways near 0.6400, tracking the US Dollar.
  • Fed spokespeople supported keeping interest rates unchanged in monetary policy in September.
  • The Australian Dollar remained on the move this week as the RBA kept interest rate policy unchanged.

The AUD/USD pair is trading up and down near the crucial resistance of 0.6400 in the London session. The pair turns sideways following the footsteps of the Dollar Index (DXY), which maintains a bid near five-month highs at 105.20.

S&P 500 futures posted some losses in the European session, portraying a cautious mood in the markets amid accelerating fears of economic turmoil due to tight monetary policy by Western central banks. Investors have parked their funds in the dollar due to uncertainty about the global economic recovery in a high interest rate environment.

European and Asian economies face the wrath of higher interest rates from their respective central banks in the battle against stubborn inflation. The economic activities of the largest continent and the trading bloc are contracting due to the vulnerable demand environment. Additionally, businesses are avoiding new credit around the world due to rising interest rates.

On Thursday, Fed spokespeople were in favor of keeping interest rates unchanged in September monetary policy. Investors await August Consumer Price Index (CPI) data for more clues on interest rate policy.

This week, the Australian Dollar remained on the move as the Reserve Bank of Australia (RBA) kept interest rate policy unchanged. On the outlook for the labor market, RBA Governor Philip Lowe cited that the unemployment rate may remain close to 40-year lows and that wage growth is strong.

Meanwhile, investors are keeping an eye on China’s Consumer Price Index (CPI) for August, which will be released on Saturday. Monthly economic data is expected to expand at a rate of 0.3%, higher than the 0.2% recorded in July. Annual inflation would be 0.1%, compared to a deflation of 0.3%.


Latest price today 0.6392
Today Daily Variation 0.0016
Today’s daily variation 0.25
Today’s daily opening 0.6376
daily SMA20 0.6437
daily SMA50 0.6586
SMA100 daily 0.663
SMA200 daily 0.6715
Previous daily high 0.6395
Previous daily low 0.6362
Previous weekly high 0.6522
Previous weekly low 0.6401
Previous Monthly High 0.6724
Previous monthly low 0.6364
Daily Fibonacci 38.2 0.6375
Fibonacci 61.8% daily 0.6383
Daily Pivot Point S1 0.636
Daily Pivot Point S2 0.6345
Daily Pivot Point S3 0.6327
Daily Pivot Point R1 0.6393
Daily Pivot Point R2 0.641
Daily Pivot Point R3 0.6426

Source: Fx Street

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