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Australian dollar holds gains versus steady US dollar after CPI
AUD/USD was around 0.7070 after US CPI broadly matched expectations, with the next potential catalyst being Thursday's US PPI release.
FXStreet reports that AUD/USD is trading near the 0.7070 zone, keeping only part of Wednesday's advance after briefly touching a session high near 0.7090.
The US Consumer Price Index largely matched forecasts, with headline inflation up 0.1% month over month and 3.4% year over year, while core annual inflation eased to 2.5% versus a 2.6% consensus. FXStreet said the initial data release weighed on the US dollar and tempered rate hike expectations.
Attention now turns to Thursday's US Producer Price Index, where core producer prices are expected to slow sharply on an annual basis. FXStreet noted that this could reinforce a disinflation case, while strategists also pointed out that the PPI could influence views around a preliminary PCE forecast and the likelihood of further Fed hikes.
On the charts, the pair was at 0.7067, holding above the 20-period and 100-period simple moving averages, at 0.7062 and 0.7016 respectively. FXStreet described nearby support around 0.7060 and overhead barriers clustered near 0.7071 and 0.7078, with momentum described as positive but not stretched based on RSI near 57.