AUD/USD is hovering under 0.6500 amid sheer energy in the USD Index.
The Australian Dollar has witnessed promoting stress no matter the higher-than-expected Australian CPI release.
AUD/USD has been strongly dumped after checking out the breakout area of the consolidation round 0.6560.
The AUD/USD pair has shifted its public sale under the round-level help of 0.6500 in the Asian session. The Aussie asset has confronted massive selling pastime regardless of higher-than-anticipated month-to-month Australian inflation data.
Monthly Australian Consumer Price Index (CPI) (April) soared to 6.8% vs. the estimates of 6.4% and the former launch of 6.3%. This should pressure the Reserve Bank of Australia (RBA) to proceed trekking pastime quotes as the hostilities in opposition to cussed inflation is getting extra complicated.
The US Dollar Index (DXY) is struggling in extending its rally above 104.35, however, the upside appears liked as possibilities of one greater hobby fee hike with the aid of the Federal Reserve (Fed) are soaring. Meanwhile, Cleveland Federal Reserve Bank President, Loretta Mester, in an interview with Financial Times, noted “I don’t clearly see a compelling motive to pause — that means wait till you get extra proof to figure out what to do.”
AUD/USD has been strongly dumped via the market members after trying out the breakout location of the extended consolidation round 0.6560 on a every day scale. The consolidation shaped in a broad vary of 0.6562-0.6810 in which stock adjustment took place.
Downward-sloping 10-period Exponential Moving Average (EMA) at 0.6558 suggests that the momentary bearish bias is extraordinarily solid.
The Relative Strength Index (RSI) (14) is oscillating in the bearish vary of 20.00-40.00, displaying no symptoms of divergence and any proof of an oversold situation, which advocates extra weak spot ahead.
Should the asset slips confidently beneath 0.6490, US Dollar bulls would drag the Aussie asset to 01 November 2022 excessive round 0.6464 accompanied through the round-level aid at 0.6400.
In an alternate scenario, a restoration cross above April 28 low at 0.6574 will power the asset towards April 10 low at 0.6620 and May 19 excessive at 0.6675.