AUDUSD’s rally hits resistance at 0.6600, pulls back to 0.6555
10.11.2022, 19:25

AUDUSD’s rally hits resistance at 0.6600, pulls back to 0.6555

  • Australian Dollar's rally from the 0.6385 area, capped at 0.6600.
  • The pair remains 2.2% up on the day, consolidating above 0.6540 previous resistance level.
  • Greenback's weakness after US CPI data has boosted the AUD.

The Australian Dollar’s rally from session lows at 0.6385 has been capped at a fresh six-week high a few pips shy of 0.6600, although the pair remains steady in the upper range of the 0.6500s.

On the daily chart, the pair moves 2,2% above the opening levels. The Aussie surged on Thursday’s early US session, following the release of US CPI data to break the top of the last six weeks’ trading range, at 0.6545.

The US Dollar plunges on weak CPI data

US inflation slowed down beyond expectations in October, which sent US Treasury yields and the Greenback lower, and boosted equity markets on hopes that the Federal Reserve might shift to softer interest rate hikes over the next months.

The overall CPI increased at a 0.4% pace, unchanged from September, against market expectations of an acceleration to 0.6%. The Core inflation, the Fed’s preferred inflation gauge, slowed down to 0.3% from 0.6% over the previous month.

Furthermore, US weekly jobless claims showed an increment of 225,000 claims in the week of November 4, up from 228,000 claims over the previous week and above the market expectations of 220,000. These figures suggest a certain loosening in the labor market and provide additional reasons to expect some easing on the Fed’s tightening plan.

Technical levels to watch

 

 

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