- US CPI inflation meets expectations, Dollar falls and then recovers strongly.
- The DXY Dollar Index remains in negative territory on the day.
- AUD/USD is facing resistance at 0.6630 and has key support at 0.6550.
The AUD/USD pair rebounded to 0.6612 following the release of US inflation data, but then fell to its daily low around the 0.6540 level. The pair is now hovering around the 0.6550 region as markets digest the data ahead of Wednesday’s FOMC decision.
USD down and up after US CPI
Inflation in the US cooled in November as expected, according to Consumer Price Index (CPI) data. The CPI rose 0.1% during the month, and the annual rate slowed from 3.2% in October to 3.1% in November. The underlying annual reading was stable at 4%.
At first, the Dollar hit new daily lows, but then rebounded strongly. Currently, the DXY Dollar Index is losing 0.30% on the day and trading around 103.80. Market participants continue to digest the CPI numbers. On Wednesday the Producer Price Index (PPI) will be published and, later, the Federal Reserve will announce its decision on monetary policy and offer new economic projections.
The AUD/USD pair is trading slightly lower on the day, around 0.6550, after finding support in the 0.6540 area. The pair continues to move sideways, limited to the upside by 0.6630 and with strong support in the 0.6550 area.
AUD/USD technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
