AUD/USD Strategy: U.S. Data Shows Inflation Rising, Hindering Non-U.S. Currency Rebounds

Fundamental Analysis:

Due to recent weak economic data from Australia, AUD bulls still lack momentum for a rebound. Although the Reserve Bank of Australia governor’s comments were hawkish yesterday, which somewhat limited AUD's decline, the market remains influenced by the "Trump trade." The U.S. dollar is holding steady at its highest level in a year, creating a significant bearish factor for non-U.S. currencies. Furthermore, inflation data released this week indicates a steady economic performance and an acceleration in inflation, giving the Federal Reserve more reason to slow down its rate cuts, which supports a stronger USD.

Technical Analysis:
On the 15-minute chart for AUD/USD, prices are in a downtrend, with the potential to correct and regain momentum in a supply-demand zone. Therefore, a short position can be considered in the supply area, with a stop loss above the top of the range. Since the current low of the trend is uncertain, targeting the bottom of the range is advisable.

TradingSuggestion:
Short at 0.64703 or better, with a stop loss above 0.64880 and a target of 0.64526.

Support level: 0.64404 Resistance level: 0.64880

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