The Australian Dollar bulls came and went on Tuesday as the price action briefly hit a fresh weekly high of US$0.7385 before paring back those gains.
Market participants are now “mostly in wait-and-see mode” ahead of this Wednesday’s U.S. consumer-price report for September CPI and U.S. retail sales, along with the latest Federal Open Market Committee (FOMC) minutes.
The U.S. September Consumer Price Index (CPI) forecast expects a rise of 0.3% or a 5.3% annualized rate. Excluding energy and food, CPI is forecast to be up 0.3% month-over-month or 4% annualized.
Investors will be looking for clues about timelines surrounding the central bank’s planned taper for its bond-buying program.
Then on Thursday, we get an update on the Australian jobs data.
The long-legged Doji has weakened momentum based on the technical assessment, while the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator has buckled slightly while holding a positive signal.
Meanwhile, the Moving Average Convergence Divergence (MACD) is positive.
The Average Directional Movement Index (ADX) trend indicator holds a to a weak bull trend.
From Tuesday’s retreat, bearish eyes now look for the US$0.7315.
If breached, could see follow-through to the support area at US$0.7270.