- Dollar correction and stable markets favor further rise in AUD/USD.
- Market focus shifts to US inflation data.
- The employment report will be published in Australia on Thursday.
The AUD/USD is rising for the second day in a row, extending the rebound from the 0.6700 zone and approaching 0.6800. The pair reached a two-day high at 0.6796.
The pair managed to return above 0.6760, gaining support for further rallies. In case of extending the advance, the next resistance is 0.6820, followed by 0.6850. In the opposite direction, at 0.6745 the first support that if broken would expose the low of the week at 0.6709 (low of the week and in two years).
Calm market waiting for the inflation data
The dollar operates with modest losses, and with some stability in a context of calm in the financial markets on Wednesday, at least in the run-up to the opening of Wall Street.
The economic calendar shows ahead the June US inflation data expected to rise from 8.6% to 8.8%, which would be a new high in 40 years. will be published later June fiscal figures and the Federal Reserve will publish the Beige Book about the state of the economy. Thursday will be the turn of the Australian employment report for June. The data could have a strong impact on the market through monetary policy expectations.
A rise of 50 or 75 basis points is expected for the next Fed meeting. Regarding the Reserve Bank of Australia Analysts see another rise of 50 basis points possible in August. A key figure for this will be the second quarter inflation data to be released on July 27.
Technical levels
Source: Fx Street
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