AUD/USD Turning Bullish Or False Alarm?
AUD/USD is up this week, and the 1H chart is looking quite bullish. As of writing this price is holding around 0.71750 and is above the moving averages (50-500), which are entering a bullish cross. The RSI is also holding bullish levels.
These technical signs all indicate bullish pressure but what about fundamental factors?
Last week the US CPI YoY data showed inflation to be at a whopping 6.8%, revealing (as we all expected) that the USD holds value about as well as a gimmicky alt-coin. Meanwhile, Australian expectations for Inflation are at 4.8%, a 2% differential from the US data. In addition to this, yesterday Australian unemployment rates gave traders a positive surprise, with unemployment at 4.6% vs the 5% consensus.
My outlook for the Aussie dollar is a slight retracement into the moving averages / trendline support prior to a sustained move to the upside.