- Australian dollar recovery from 0.6385 zone, capped at 0.6600.
- The pair is still up 2.2% on the day, consolidating above the previous resistance level of 0.6540.
- Dollar weakness following US CPI data has buoyed AUD.
The Australian dollar’s recovery from session lows at 0.6385 has been limited to a fresh 6-week high just a few points below 0.6600, although the pair remains stable in the upper 0.6550 range.
On the daily chart, the pair is trading 2.2% above opening levels. The Aussie rose early in the US session on Thursday, following the release of US CPI data, to break the top of the six-week trading range at 0.6545.
Dollar falls after weak CPI data
US inflation slowed more than expected in October, pushing down US Treasury yields and the dollar, and buoying equity markets on hopes the Federal Reserve may switch to softer rate hikes. interest in the coming months.
The headline CPI rose at a 0.4% pace, unchanged from September, versus market expectations for an acceleration to 0.6%. Core inflation, the Fed’s preferred gauge of inflation, eased to 0.3% from 0.6% a month earlier.
On the other hand, weekly US jobless claims showed an increase of 225,000 claims in the week ending November 4, up from 228,000 the previous week and above market expectations of 220,000. These figures suggest some easing in the labor market and provide additional reasons to expect some easing in the Fed’s tightening plan.
Technical levels to watch
Source: Fx Street
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