AUD – Inflation Data Dries Up Rate Cut Expectations, Australian Dollar Rebounds

The Australian dollar is currently holding steady above 0.65 against the US dollar, boosted by higher-than-expected Australian CPI data released on Wednesday. The Reserve Bank of Australia is expected to keep interest rates unchanged on December 9th; conversely, the Federal Reserve may cut rates on December 10th.

Technically, the key support level to watch is the trendline formed over the past three months at 0.6460. This level was slightly broken last week but has since rebounded and is now poised to test the descending trendline, currently at 0.6550. A decisive break above this level would likely see the Australian dollar return to its upward trend, with resistance estimated at 0.6580, followed by 0.67 and 0.68. Key support is expected at 0.64, a level the Australian dollar has held above for the past three months, followed by 0.6370 and 0.6180.

Forecasted Range:
Resistance: 0.6550* - 0.6580 - 0.6700 – 0.6800
Support: 0.6460* - 0.6400* – 0.6370 – 0.6180

This Week's News Highlights:

26/11
Australia's October CPI rose 3.8% year-on-year.
Australia's October CPI cutoff mean rose 3.3% year-on-year.

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