Australian Dollar is about to get volatile as eyes turn to Governor Lowe’s speech next week, followed by Australia’s May jobs data

June 11, 2021 - 2 weeks ago
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For 21 days, the Australian Dollar has remained locked within a rangebound pattern within the boundaries of US$0.7660-80 to US$0.7800-15.

However, this could all change as eyes turn to Governor Lowe’s speech next week, followed by Australia’s May jobs data.

However, before the RBA Governor speech, we also have the U.S. Federal Reserve’s meeting (rate decision) scheduled for June 15-16.

The statement will be closely scrutinised to see whether the Fed begins to believe that inflation is higher than expected or that the economy is strengthening enough to progress without much monetary support.

In the meantime, the AUD/USD is currently trading in the middle of the broad range at US$0.7760.

Australia published June Consumer Inflation Expectations on Thursday in economic news, which jumped to 4.4% from 3.5% previously.

U.S. headline inflation as measured by the Consumer Price Index (CPI) jumped again in May, marking its highest annual inflation rate since the summer of 2008 amid the economic recovery from the pandemic-triggered recession, the Labor Department said on Thursday.

U.S. (CPI), which represents a basket including food, energy, groceries, and prices across a spectrum of goods, rose 0.6% in May on a seasonally adjusted basis and was up a stunning 5.0% from a year ago, coming in hotter than consensus expectations.

The U.S. core (CPI), which excludes food and energy, was up 3.8% year on year, the highest since 1992.

Viewing the technical assessment, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator has risen further since clearing the 50-midway point.

Meanwhile, the Moving Average Convergence Divergence (MACD) attempts to restore its positive bias as to the RSI.

Technically, the (bearish) broader assessment is expected to maintain the focus on the support region (bull camp) at US$0.7660-80, while the near-term cap (resistance) at US$0.7800-15 is intact.

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