Traders await US inflation figures to gauge Federal Reserve policy moves, weighing on the AUD/USD pair amid a stronger USD.
The AUD/USD pair retreated toward 0.7200 in early European trading, pressured by a resurgent US Dollar (USD) as geopolitical tensions fueled safe-haven demand. Sellers dominated after the pair failed to break above 0.7250, with focus shifting to today’s US Consumer Price Index (CPI) report.
The CPI data will shape expectations for the Federal Reserve’s next policy steps, particularly after recent speculation about a potential rate hike by year-end. Meanwhile, the Reserve Bank of Australia’s hawkish stance may provide some support for the Aussie, capping further losses.
Technically, the pair remains above its 100-period EMA, signaling buyer control despite a pullback. However, the RSI near 45 and a slightly negative MACD suggest a shallow correction rather than a full reversal.