AUD/USD to Surge: Exploiting Soft CPI and Fed Rate Cut Dynamics
Updated
Hello Traders,
In today's trading session, we are closely monitoring AUD/USD for a potential buying opportunity around the 0.66100 zone. AUD/USD is currently trading in an uptrend and is in a correction phase, bringing it closer to the key support and resistance area at 0.66100. This level has historically served as a significant pivot point for price action, making it an attractive entry point for long positions.
Fundamentally, recent developments have bolstered our outlook for AUD/USD. Yesterday's CPI data came in softer than expected, indicating that inflationary pressures are lower than anticipated. This softer inflation data suggests a more subdued economic environment, reducing the urgency for aggressive monetary tightening by the Federal Reserve.
In response to the soft CPI data, the Federal Reserve cut interest rates during the latest FOMC meeting. This dovish move is expected to weigh heavily on the USD, as lower interest rates typically lead to a weaker currency. Consequently, a weaker USD enhances the appeal of the AUD, supporting our bullish view on AUD/USD. Given these fundamental factors, the 0.66100 zone presents a strategic opportunity for buying AUD/USD.
Trade safely,
Joe
In today's trading session, we are closely monitoring AUD/USD for a potential buying opportunity around the 0.66100 zone. AUD/USD is currently trading in an uptrend and is in a correction phase, bringing it closer to the key support and resistance area at 0.66100. This level has historically served as a significant pivot point for price action, making it an attractive entry point for long positions.
Fundamentally, recent developments have bolstered our outlook for AUD/USD. Yesterday's CPI data came in softer than expected, indicating that inflationary pressures are lower than anticipated. This softer inflation data suggests a more subdued economic environment, reducing the urgency for aggressive monetary tightening by the Federal Reserve.
In response to the soft CPI data, the Federal Reserve cut interest rates during the latest FOMC meeting. This dovish move is expected to weigh heavily on the USD, as lower interest rates typically lead to a weaker currency. Consequently, a weaker USD enhances the appeal of the AUD, supporting our bullish view on AUD/USD. Given these fundamental factors, the 0.66100 zone presents a strategic opportunity for buying AUD/USD.
Trade safely,
Joe
Note
Soft PPI
Note
Decent pullbacks approaching the trend now!
will be watching the price action shortly
Note
AUDUSD is trying to break a hidden support of 0.66250Trade active
DXY is retracing from a decent resistance.
Can be a good catalyst for further AUDUSD upsides
Note
stocks are having a decent bullish pace which can be good for the correlationNote
Soft retail sales, pretty decent for AUDUSD!Note
a rate cut was not discussed at today's RBA meetingNote
AUDUSD is testing converged 100/200 bar MAs on 4-hour chart
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