AUDUSD falters as recent came in favour for prolonged rate hikes.
“Fed preferred inflation data stoked higher expectation for prolonged rate hike in the long run.”
US dollar held on to its gains near seven-week high as Fed preferred inflation data reinforced the expectations for more rate hikes. According to reports, Personal Consumption Expenditure (PCE) price index rose 0.6% last month, significantly higher than previous month of 0.2%. The uptick in prices were stoked by higher consumer spending, which jumped around 1.8% in January. Moreover, the data also takes account of new property sales which achieved its highest level since March 2022 with 7.2%. The data, which has confounded some expectations for a dip in spending cemented the course for longer period of rate hikes.
AUDUSD, Daily: AUDUSD closed below 200-MA, cementing the course for further downside bias. While MACD shows significant bearish momentum, we suggest to wait for a close below 0.6720 before entering the market.
Resistance level: 0.6880, 0.7045
Support level: 0.6720, 0.6520
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