AUD/USD is firm near 0.6950 ahead of Aussie’s data, US CPI – Crypto News – Crypto News
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AUD/USD bulls holding on as US dollar remains soft ahead of Powell speeh AUD/USD bulls holding on as US dollar remains soft ahead of Powell speeh

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AUD/USD is firm near 0.6950 ahead of Aussie’s data, US CPI – Crypto News

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  • AUD/USD encountered support around 0.6890 and climbed back above 0.6950.
  • Inflation in the United States is estimated to cool down, as CPI and Core CPI will be revealed on Tuesday.
  • Per the New York Fed, inflation expectations for one year are estimated at around 5%.
  • Traders are eyeing the release of Aussie’s Consumer Sentiment and Business Confidence reports.

The AUD/USD edges higher in the North American session by 0.75%, spurred by a risk-on impulse, ahead of the release of US inflation data on Tuesday, which is expected to cool down, according to a news sourcespoll. Nevertheless, the jump was capped by Federal Reserve (Fed) Governor Bowman’s hawkish commentary, keeping the major within familiar levels. At the time of writing, the AUD/USD exchanges hands at 0.6966.

United States equities continued to climb in the mid-New York session. Inflation expectations in the United States remained firm, as reported by the New York Federal Reserve poll. Data showed that Americans estimate inflation to remain steady at 5%, while for three years, they observe inflation at around 2.7%, down from 2.9% in December. For a five-year horizon, inflation is estimated at 2.5%, vs. 2.4% in the previous month.

AUD/USD is still aiming higher in the day, near the highs of the day, underpinned by risk appetite, Traders are awaiting inflation figures from the United States (US), with January’s Consumer Price Index (CPI) predicted at 6.2% YoY, down from December’s 6.5%, while core data is estimated at 5.5% YoY, from 5.7% in the prior month .

Elsewhere, Federal Reserve (Fed) officials continued to cross wires. Fed Governor Michelle Bowman commented that the Federal Funds Rate (FFR) would need to increase to bring inflation toward its 2% target. She added that the US central bank needs to bring supply and demand into balance.

What to watch?

The Australian economic docket will feature Consumer Sentiment and the NAB Business Confidence report. On the US, the docket will reveal the already mentioned inflation data, along with further Fed speakers, led by Lorie Logan of the Dallas Fed and the NY Fed President John Williams.

AUD/USD Key technical levels

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