US Producer Prices and Consumer Sentiment to Test US Dollar Demand
On the US front, economic indicators will continue influencing AUD/USD trends. Later in the Friday session, producer prices and consumer sentiment figures will impact US dollar demand.
Economists expect producer prices to increase by 1.6% year-on-year in September, following a rise of 1.7% in August. Softer-than-expected figures could signal a decline in consumer prices. Producers tend to lower prices as demand weakens, passing savings on to consumers. The US dollar may be more sensitive to the data following Thursday’s CPI Report.
Conversely, higher producer prices or an increase in consumer sentiment could push the AUD/USD toward $0.67.
Short-Term Forecast for AUD/USD
Near-term AUD/USD trends will likely hinge on policy updates from Beijing and US economic data. Nevertheless, higher producer prices and improving consumer sentiment will likely impact the AUD/USD more.
Investors should closely monitor central bank signals and economic indicators, which could influence AUD/USD trends. Beyond the economic calendar, news updates on the Middle East conflict also need monitoring. Risk aversion could trigger a flight to safety, affecting demand for commodity currencies, including the Aussie dollar.
AUD/USD Technical Analysis
Daily Chart: AUD/USD Breakout Intact
The AUD/USD hovers below the 50-day EMA while remaining above the 200-day EMA, confirming bearish near-term but bullish longer-term price trends.
A break above the 50-day EMA could support a move toward the $0.68006 resistance level. Furthermore, a breakout from the $0.68006 resistance level may give the bulls a run at the $0.68500 level.
Traders should consider the central bank commentary and the US data, which may influence AUD/USD price movements.
Conversely, an AUD/USD fall through the $0.67050 support level could indicate a drop to the 200-day EMA.
With a 14-period Daily RSI reading of 44.66, the Aussie dollar may fall to the 200-day EMA before entering oversold territory.
