The AUD/USD pair retreated from a peak of 0.6529 after Australian inflation figures exceeded expectations. The US Dollar Index rose due to strong US economic indicators and caution ahead of a key GDP report. Despite robust Q1 inflation data suggesting strong Australian economic activity, analysts still anticipate an RBA rate cut.
The Aussie Dollar gained 0.15% against the US Dollar on Wednesday but fell from weekly highs. The AUD/USD is currently trading at 0.6495 as the Asian session begins.
Wall Street had a mixed performance on Wednesday following META’s earnings report. Investors are wary ahead of the US GDP report, which is expected to show a 2.5% QoQ growth in the first quarter. Additionally, Initial Jobless Claims are forecasted to increase.
US economic data released on Wednesday showed that the economy remains solid. Durable Goods Orders rose 2.6% MoM, exceeding expectations. Core goods also saw an increase, albeit slightly below projections.
Australia’s Bureau of Statistics reported that Q1 2024 inflation surpassed estimates, leading traders to push the AUD/USD above 0.6500. Despite this, ANZ Bank analysts predict an RBA rate cut in November.
In terms of technical analysis, the AUD/USD faced resistance at the 200 and 50-day moving averages, retreating below 0.6500. If the pair drops below 0.6483, it could fall towards the February 13 low at 0.6442.