Crypto Comeback Pro Trading Robot

AUD/USD Draw Back from Daily High Level, Returns to Mid-0.6900 Area After US CPI Release

New CPI Instigates Pair’s Drop

The AUD/USD currency pair has fallen more than 60 pips due to the recently released consumer price index data in the United States. The figures came in hotter than what was expected and the pair went low to trade with just an average intraday profit. It traded right under the mid-0.6900 area.

AUD/USD price chart. Source TradingView

The Office of Labor and Statistics gave a report on Wednesday that the consumer price index of the United States increased by 0.3% month-on-month in the month of April. This was against the general forecast that pointed in the direction of 0.2%. The annual rates equally went beyond the market’s forecast and reached 8.3% also in the month of April.

The major inflation rate, which does not include the price of energy and food, was reported at 0.6% month-on-month and 6.2% year on year. The expected figures for both data were 0.4% and 6% respectively.

The recent report only shows that the pressures from inflation in the largest economy in the world are getting to a peak. Although the reports were strong in confirming the market’s speculations for a more aggressive monetary policy to be implemented by the US Federal Reserve. 

The Market’s Further Expectation

In accordance with facts on the ground, the market is still pricing in up to a 200 basis points increase in interest rates spread through the rest of this year. This is even with the reality of the Chinese government’s policy on zero COVID as it tries to fight the pandemic, as well as the war in Ukraine. All these factors have the potential of pushing consumer prices to higher levels.

Aside from the mentioned issues, a sharp turn in general risk sentiments increased demands for the US Dollar as a safe-haven commodity. This was exemplified in the steep intraday decline in the stock markets. The risk sentiment equally applied some declining pressure on the AUD/USD currency pair.

The presence of new sales at a higher level indicates that the latest decline that was seen in the last month or a little over that might not be over just yet. The decline, of course, is in favor of bearish traders.

Previous Article
Next Article

Leave a Reply

Your email address will not be published.

Name Price24H (%)
Bitcoin (BTC)
Ethereum (ETH)
Tether (USDT)
Litecoin (LTC)

Start Trading

Best VPN Deal Of The Year


Recent Comments


    This website may have financial affiliations with some (not all) of the brands and companies mentioned on this website. The content you are viewing may be sponsored content. Information found on this website does not represent opinions on whether to buy, sell, or hold any investment assets or sign up with any of the services mentioned. Any disputes you may have with brands or companies mentioned on our blog will need to be taken care of directly with the specific brands and companies. The responsibility of our readers who may click links in our content and ultimately sign up for that product or service is their own. Investors must do their own research before investing their money and only do so at their own risk.

    Don't Miss Crypto Comeback Pro!

    #1 Cryptocurrency Price Prediction Software and Trading Robot
    Sign Up

    Try Crypto Engine With a Trusted Broker