AUDUSD Outlook 1st March 2023

FX:AUDUSD   Australian Dollar / U.S. Dollar
Overnight, the AUDUSD fluctuated between the 0.67 and 0.6760 price range as the DXY retraced lower but recovered in strength toward the end of the trading session.

Early this morning, the AUD CPI was released at 7.4% (Forecast: 8.1% Previous: 8.4%) which was significantly lower than expected. This signals that the ongoing interest rate hikes from the RBA are taking effect in lowering inflation in Australia.

However, a cost of the significant rate increases is the slowdown in the economy as the Australian GDP slid to 0.5% (Forecast: 0.8% Previous: 0.7%).

The AUDUSD traded lower to test the 0.67 support level but rebound strongly to the upside, testing the bearish trendline.

If the price breaks above the trendline, the AUDUSD could see further moves higher toward the near-term resistance area of 0.6780 before continuing with the downtrend, retesting the 0.67 round number support level and breaking below that. Beyond 0.67, the next key support level is 0.6630.

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