AUD/USD Consolidates Below 0.6800, Awaits Powell's Speech and Key Data
AUD/USD Market Drivers and Outlook
Powell's previous comments indicated a cautious approach to rate cuts, emphasizing the need for sustained disinflation. However, with the US Consumer Price Index (CPI) for June showing further cooling, market expectations for a September rate cut have strengthened.
Strong overnight futures performance suggests a positive opening for the S&P 500, reflecting increased risk appetite. The US Dollar Index (DXY) is struggling to hold above 104.00, reflecting the USD's recent weakness.
Key economic data releases this week include US Retail Sales for June and Australian Employment data for the same month. Robust job growth in Australia could bolster expectations of further policy tightening by the Reserve Bank of Australia (RBA).
AUD/USD Technical Analysis:
The AUD/USD pair is currently consolidating below the 0.6800 resistance level. A break above this level could signal further upside momentum, while a failure to hold could trigger a pullback towards recent support levels. Traders should closely monitor Powell's speech and upcoming economic data for potential catalysts.
Key Points:
- AUD/USD consolidates below 0.6800 ahead of Powell's speech.
- Softer US inflation data fuels rate cut expectations.
- Strong risk appetite boosts S&P 500 futures.
- US Retail Sales and Australian Employment data in focus.