The Impact of US Inflation Rate on Forex Trading

The Impact of US Inflation Rate on Forex Trading

As per Shane Oliver’s analysis of the US Jobs Report, the US Aug payrolls increased by 142k. The near-term trends for AUD/USD are likely to be influenced by the upcoming US CPI Report. If the figures turn out to be weaker than expected, it could overshadow the softer Australian consumer inflation expectations, leading to a support for an AUD/USD move towards $0.67. However, traders should also consider the monetary policy-related comments from the Reserve Bank of Australia (RBA) and the Federal Reserve (Fed) to better understand the future moves in the market.

It is essential for investors to closely monitor key economic data and central bank communications as these factors can significantly impact the price movements of AUD/USD. Real-time data, news updates, and expert commentary should be used to make informed trading decisions. Keeping track of the latest views and analysis in the forex market can help in managing exposures effectively.

Currently, the AUD/USD is trading below the 50-day Exponential Moving Average (EMA) while staying above the 200-day EMA. This suggests a bearish outlook in the near term but remains bullish in the longer term. A breakout from the 50-day EMA could indicate a move towards the $0.67003 resistance level, followed by a possible breach of the $0.67500 level. Traders should also pay attention to the inflation numbers from Australia, the upcoming US CPI Report, and any central bank commentary for further insights.

On the downside, a drop below the top trend line and the 200-day EMA could signal a decline towards $0.66. Any buying pressure is expected to intensify at the top trend line, as the 200-day EMA coincides with this level. With a 14-period Daily Relative Strength Index (RSI) reading of 44.90, there is a possibility that the Aussie dollar might dip below the 200-day EMA before entering oversold territory.

The US inflation rate has a significant impact on forex trading, particularly on the AUD/USD pair. Traders need to carefully analyze economic data, central bank statements, and technical indicators to make well-informed decisions in the ever-changing forex market. Staying updated with the latest developments and market analysis is crucial for trading .

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