AUD/USD leads the way after Australian inflation spike, with EUR/USD and GBP/USD following
EUR/USD, GBP/USD and AUD/USD remain on track to benefit from dollar weakness, with a jump in Australian inflation bring particular outperformance for AUD.
EUR/USD continues to push higher
EUR/USD has managed to maintain its bullish trajectory despite recent volatility within equity markets. The growing disparity between eurozone and US inflation means that any inflation/interest rate concerns does not necessarily means the pair downside.
Today has seen a surprise jump in Australian inflation, while the Bank of Canada provides a fresh monetary policy decision to note. Nonetheless, unless we see price fall back through the $1.0766 swing-low, it looks likely that any declines are a short-term pullback before the bulls come back into play.
GBP/USD weakens from key resistance
GBP/USD has been struggling to maintain its upward trajectory over the course of this week, with the recent surge into the £1.2446 resistance level on early-Monday bringing a period of less convincing price action. The decline through the $1.2313 support level brings expectations of a wider pullback for the pair, with price at risk of another downturn to retrace the £1.2086-1.2448 move.
With that in mind, there is a risk of another pullback here, with the 61.8-76.4% zone providing a potential area for the bulls to come back into play.
AUD/USD drives higher after surprise inflation spike
AUD/USD has pushed sharply higher, with a surge in Australian inflation bringing a fresh five-month high for the pair. The 7.8% reading for Australian Consumer Price Index (CPI) represents a three-decade high, with rising energy costs and a resurgence in tourism pushing prices upward. This is certainly a warning for those that view prices as being on a one-way path lower.
For AUD/USD, this provides a push higher that brings us towards the $0.7137 resistance level established back in August 2022. The ability to drive through that point remains key here, with such a break bringing expectations of a bullish continuation. Nonetheless, any pullback would simply look like a retracement within a bullish trend unless the $0.6871 swing-low is broken.
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