The Australian Dollar (AUD) depreciates against the US Dollar (USD) on Friday, which could be attributed to the dovish comments from the Reserve Bank of Australia’s (RBA) Deputy Governor Andrew Hauser. Hauser said it would be a “bad mistake” to formulate policy in response to a single inflation report. He emphasized that there is still a suite of economic data to come that will require detailed analysis, per Bloomberg.
The AUD gained ground after releasing May’s higher-than-expected Monthly Consumer Price Index (CPI). The persistently high inflation has fueled speculation that the RBA might raise interest rates again in August.
The US Dollar (USD) gains ground due to higher yields on US Treasury bonds. FridayÂ’s Core PCE Price Index inflation is projected to decrease YoY to 2.6% from the previous 2.8%. This data is seen as the Federal Reserve’s (Fed) preferred inflation gauge.
The Australian Dollar trades around 0.6630 on Friday. The daily chart analysis indicates a neutral bias for the AUD/USD pair as it consolidates within a rectangle formation. The 14-day Relative Strength Index (RSI) is at the 50 level, also suggesting neutral momentum. Further movement may signal a clear directional trend.
The AUD/USD pair finds support around the 50-day Exponential Moving Average (EMA) at 0.6618. A break below this level could lead the pair to test the lower boundary of the rectangle formation near 0.6585.
On the upside, the AUD/USD pair may face resistance near the upper boundary of the rectangle formation around 0.6695, close to the psychological level of 0.6700. Further resistance appears at 0.6714, the highest level since January.
The table below shows the percentage change of the Australian Dollar (AUD) against listed major currencies today. The Australian Dollar was the weakest against the US Dollar.
 | USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
---|---|---|---|---|---|---|---|---|
USD | Â | 0.08% | 0.03% | 0.08% | 0.05% | 0.07% | 0.17% | 0.14% |
EUR | -0.08% | Â | -0.05% | 0.00% | -0.03% | -0.02% | 0.08% | 0.06% |
GBP | -0.03% | 0.05% | Â | 0.02% | 0.00% | 0.02% | 0.14% | 0.08% |
JPY | -0.08% | 0.00% | -0.02% | Â | -0.06% | -0.03% | 0.07% | 0.05% |
CAD | -0.05% | 0.03% | -0.01% | 0.06% | Â | 0.00% | 0.12% | 0.06% |
AUD | -0.07% | 0.02% | -0.02% | 0.03% | -0.01% | Â | 0.11% | 0.07% |
NZD | -0.17% | -0.08% | -0.14% | -0.07% | -0.12% | -0.11% | Â | -0.05% |
CHF | -0.14% | -0.06% | -0.08% | -0.05% | -0.06% | -0.07% | 0.05% | Â |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
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