The AUD/USD pair saw a rebound on Monday as sellers took a break from the recent downward trend. The focus now shifts to Wednesday, when the US will release inflation data and the Federal Reserve will announce its interest rate decision. Monday’s session will not have any major economic events.
The Australian economy is showing some weakness, but the Reserve Bank of Australia is expected to be the last central bank among G10 countries to cut rates as it waits for more evidence of falling inflation. In contrast, the US economy remains strong, as seen in the recent Nonfarm Payrolls report.
Market watchers are eagerly anticipating the CPI data from May and the Fed’s interest rate decision on Wednesday. The RBA is also keeping an eye on inflation despite signs of slowing growth. Traders are closely following economic indicators and RBA statements for hints on the future direction of the AUD/USD pair.
Despite a slight retracement, the AUD/USD pair is holding above key support levels. The Relative Strength Index indicates bearish sentiment, while the MACD shows increasing selling pressure. Nevertheless, the pair remains positive as it stays above the 100 and 200-day SMAs around 0.6550.