AUD/USD saw a slight increase on Wednesday, despite the US Dollar gaining strength. This was due to higher-than-expected inflation figures in Australia, as reported by the Reserve Bank of Australia’s Monthly CPI Indicator. The RBA has maintained a hawkish stance, keeping the official cash rate at 4.35% and showing flexibility for future decisions.
Governor Bullock confirmed that the RBA discussed potential rate hikes but ruled out cuts, emphasizing the importance of keeping inflation within the target range. The contrast between potential Fed easing and the RBA’s restrictive stance could support AUD/USD in the future, although concerns about the Chinese economy may hinder the Australian currency’s recovery.
In Australia, the Monthly CPI Indicator showed an increase in both the Weighed mean CPI and the Trimmed mean CPI. The short-term technical outlook for AUD/USD suggests that if bulls take control, the pair could reach key resistance levels. On the other hand, bearish attempts may push the pair lower, with the 200-day SMA acting as a critical support level. Overall, the uptrend should continue as long as AUD/USD remains above the 200-day SMA.