The Australian Dollar held steady against the US Dollar at 0.6624, despite pressure from Fed Chair Jerome Powell’s hawkish comments following a 0.5% rise in the US Producer Price Index. Powell expressed less confidence in disinflation and foresees a 2% GDP growth, attributing it to a strong labor market.
Australia’s 2024-25 budget has returned to a deficit, with ANZ analysts citing fiscal easing of 0.25-0.5% GDP. The upcoming release of Australia’s Wage Price Index is expected to remain stable at 0.9% QoQ and 4.2% YoY.
In terms of technical analysis, the AUD/USD pair is neutral to upward biased, with resistance levels at 0.6648, 0.6700, and 0.6728. Support levels are at 0.6569, 0.6546, and 0.6521. Bulls are eyeing a break of the May 3 daily high to pave the way for further gains.