• The Australian dollar dominates the week vs. the greenback, reaffirming its neutral-upward bias.
  • The economic docket would feature Fed speakers in the day as traders get ready for US CPI.
  • AUD/USD Technical Outlook: The pair is neutral biased unless it reclaims the 100-DMA at 0.7248.

The AUD/USD print gains for the third straight day, so far up 1.5% in the week as market players prepare for Thursday’s US inflation figures. At the time of writing, the AUD/USD is trading at 0.7185.

Wednesday’s economic docket is light, except for Fed speakers Michelle Bowman and Loretta Mester, leaving AUD/USD’s traders adrift of market sentiment plays or positioning ahead of new financial data. On Thursday, January’s US Consumer Price Index (CPI) is foreseen at 7.3%. The so-called Core CPI, excluding volatile items like food and energy, is estimated at 5.9%, both readings annually based.

During the week, John Edwards, a former Reserve Bank of Australia (RBA) member, said that the RBA could raise rates four times in quick succession late in 2022. The last week, RBA Governor Philip Lowe “conceded” that tightening of monetary policy was a “plausible scenario.” Nevertheless, he emphasized, as noted in the Statement of Monetary Policy as well and in the press conference, that the beard is prepared to be “patient.”

Earlier in the Asian session, the Australian economic docket featured the Westpac Consumer Confidence Index for February at 100.2, lower than the 102.2 reported in January. On Thursday, Building Permits for December is estimated to increase by 8.2%.

AUD/USD Price Forecast: Technical outlook

The AUD/USD is neutral biased, as shown by the daily moving averages (DMAs). At press time, the AUD/USD is trading above the 50-DMA, which sits at 0.7163, but seems far from the 100-DMA at 0.7248, which intersects with a three-month-old downslope trendline around that area.

However, a daily close above the 50-DMA would expose 0.7200 as the following resistance level. Once that gives way, then and only then, AUD bulls would challenge the 100-DMA. A breach of the latter would expose the January 13 daily high 8-pips short of the 0.7300 figure.

This article was originally published by Fxstreet.com.Read the original article here.


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