AUD/USD holds steady near recent highs ahead of expected RBA rate hike
Japan's likely FX intervention has temporarily removed a key macro headwind, triggering USD weakness and reigniting risk appetite, lifting AUD/USD back towards range highs. With the Aussie highly sensitive to volatility, yields and energy prices, the near-term setup favours further upside, especially if intervention resumes.
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AUDUSD currency pair recently reversed from the resistance zone between the key resistance level 0.7190 (which has been reversing the price from March) and the upper daily Bollinger Band.
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Australian inflation accelerated sharply in March as the early impact of the Iran war flowed through via higher energy prices, but the overall result was not as severe as feared and underlying measures did not materially worsen. That helped trim expectations for the scale of further RBA tightening, although markets still see a high chance of a hike next week with another two moves largely priced by year-end.
When is the Australia monthly CPI and how it could affect AUD/USD?