- A higher-than-expected Consumer Price Index (CPI) in Australia could offer a chance to break above 0.7100.
- The US calendar will feature S&P Global PMIs on Tuesday and GDP on Wednesday.
- AUD/USD: Failure to gain traction above 0.7050 will expose the pair to sellers; otherwise, a 0.7100 test is on the cards.
The Australian Dollar (AUD) climbs sharply against the US Dollar (USD) even though the greenback is positing minimal gains, spurred by risk appetite improvement. Also, Australia’s inflation report on Wednesday could trigger a reaction by the Reserve Bank of Australia (RBA). At the time of writing, the AUD/USD is trading at 0.7025.
AUD/USD holds steadily above 0.7000 despite a bid US Dollar
The AUD/USD has extended us gains, though slightly capped by the buck. The US Dollar Index (DXY), a gauge of the buck’s value against six peers, is gaining 0.13%, at 102.124, underpinned by US Treasury bond yields rising. The 10-year benchmark note rate advances three and a half bps at 3.521%.
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