The USD to AUD rate has been confined within a narrow 100-pip range, with moving averages serving as crucial support and resistance levels. These technical indicators have provided traders with clear signals to enter the market, capitalizing on price bounces at either end of the range.

Last night, the May CPI inflation report from Australia was released, which was anticipated to show another increase to 3.8%, continuing the trend of rising inflation seen in March and April. This persistent inflation pressure has been keeping the Reserve Bank of Australia (RBA) leaning towards a hawkish stance.

AUD/USD Chart Daily – MAs

Analysts and investors view the RBA’s hawkish stance as a strong argument for a long position on AUD/USD , reducing expectations for rate cuts. Today’s release of the May Australian CPI YoY results reinforced this sentiment. However, the future of this currency pair will also hinge significantly on the upcoming US core PCE data, which the Federal Reserve is closely monitoring.

May CPI Inflation Report from Australia

AUD/USD Live Chart Price