AUD/USD BULLISH OUTLOOKThe USD, having experienced substantial blows from rate cut projections, faces a challenging scenario with the Fed signaling probable easing. Despite the narrative of falling inflation, policymakers are aiming to relay the message that inflation has yet to stabilize sustainably near the targeted 2%. The looming Fed speeches, particularly Chair Powell's impending remarks, serve as preludes to the blackout period before the December policy meeting, crucial in shaping market expectations.
As the USD grapples with uncertainties, major currency pairs are capitalizing on its weakness. The AUD, alongside currencies like the GBP and NZD, has displayed resilience, buoyed by a hawkish tone from the Reserve Bank of Australia (RBA). However, doubts persist about China's economic revival, making forthcoming Australian CPI readings pivotal for short-term AUD prospects.
The AUD/USD technical indicators signal a bullish trajectory, with both MACD and RSI showing buy signals. The current trend could potentially elevate the price to levels around 0.6795, although a pivot point at 0.6648 might redirect the price to around 0.6598.
With the USD on a downtrend, and pivotal economic events looming, the AUD's performance against the greenback hinges heavily on data releases, central bank policies, and global economic sentiments in the days ahead.
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