AUD – Markets anticipate a Fed rate cut, sending the Australian dollar rebounding from its lows.

Australia's consumer price inflation in July exceeded expectations, adding to price volatility this year. Data from the Australian Bureau of Statistics showed that the Consumer Price Index (CPI) rose 2.8% year-on-year in July, up from 1.9% in June and exceeding the median forecast of 2.3%. Core inflation, trimmed to the mean, rose 2.7% year-on-year in July, up from 2.1% in June. Excluding volatile items and holiday travel, the price index rose from 2.5% to 3.2%.

As for the Australian Dollar against the US Dollar, technically, the RSI and Stochastics have just rebounded from oversold territory, suggesting a potential stabilization for the Australian dollar. The 100-day moving average is currently at 0.6460, with significant support extending to the 200-day moving averages at 0.6380 and 0.6340. Next key support levels are 0.6280 and 0.62. Resistance lies at the 25-day moving average of 0.65; further resistance lies at 0.66 and the 50-month moving average of 0.6730. Medium-term resistance lies at the high of 0.6942 last September, further towards the 0.70 mark.

Estimated Range:
Resistance: 0.6500 - 0.6600 - 0.6730 - 0.6942 - 0.7000
Support: 0.6460 - 0.6380 - 0.6340 - 0.6280 - 0.6200

Focus:
Thursday
Australia's Q2 Capital Expenditure (09:30)

Friday
Australia's July Housing and Private Lending (09:30)

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