AUD/USD Price Forecast: Sits near May 14 high, above 0.7200 as US inflation data looms
The AUD/USD pair holds steady above the 0.7200 mark through the Asians session on Thursday and remains close to its highest level since May 14, touched earlier this week.
The AUD/USD pair currently sits near its May 14 high, trading above 0.7200 as traders await US inflation data. Market participants are waiting for the key US inflation figures to gauge the Federal Reserve's (Fed) policy path, which will provide a fresh impetus for the currency pair. In the meantime, the USD remains on the defensive due to a hawkish Bank of Japan (BoJ) influence, supporting the AUD/USD pair.
Additionally, speculation of another interest rate hike by the Reserve Bank of Australia (RBA) later this month further bolsters the Australian Dollar (AUD). The US central bank is expected to raise borrowing costs at its policy meeting on September 15-16. Rising tensions between the US and Iran also provide some support to the safe-haven Greenback, which hinders AUD/USD bulls from positioning for further gains.
From a technical standpoint, the AUD/USD pair has moved higher from the August monthly low, following an upward-sloping channel, indicating a well-established uptrend. However, mixed momentum oscillators suggest that spot prices might be capped near the top boundary of the channel. A break above the resistance at 0.7260 could extend the uptrend, while a drop below the support level at 0.7172 could undermine the current bullish structure and signal a deeper corrective phase within the broader advance.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
