AUD/USD Retraces Below 0.7350 Ahead Of US CPI/FOMC Minutes
The Aussie has been underperforming since the start of the day as investors are currently awaiting the inflation figures from the United States and the last FOMC meeting minutes from the Federal Reserve.
AUD/USD Slides Ahead Of Key Inflation Figures
The AUD/USD pair has been underperforming over the past few hours after rallying since the start of the week. The pair started the day trading above the $0.7360 region, thanks to the Aussie’s strong performance over the past few trading sessions.
However, the market quickly turned bearish for the Aussie, with the AUD/USD pair dropping below the 0.7340 point earlier today. At the time of writing, the pair is down by 0.33% and is trading below the 0.7350 level.
The investors are keenly watching the market as the United States is set to publish its CPI levels later today. The US inflation level would play a huge role in how the AUD/USD pair performs for the remainder of the day.
If the inflation numbers in the United States are high, then the AUD/USD pair could surge higher over the coming hours and trading sessions. The Aussie would be strengthened against the greenback, and that would lead to a further rally.
However, in the event of low inflation levels in the United States would strengthen the US Dollar and lead to further decline of the AUD/USD pair. Investors are also looking forward to the FOMC minutes as they seek to understand how the US Fed is currently viewing the economy. With the Coronavirus still affecting the global economy, the Fed’s view on the United States economy will go a long way in determining the greenback’s performance.
AUD/USD Could Surge Higher
The AUD/USD pair has been underperforming over the past few hours, but it could rally higher in the coming hours. If the Aussie rallies higher, then the pair could be heading towards the 0.7370 level over the coming hours. However, market experts expect the pair to stay within the 0.73 level over the next few weeks.