The AUD/USD exchange rate is bouncing back on Tuesday after a solid start to the week for the US currency. The AUD/USD pair’s bulls have extended their recovery from the lows over 0.7200. The return of risk appetite is supporting the Aussie dollar.
Since January’s YTD low of 0.7000, the pair has been teetering on an ascending trend line that began at that point. Fibonacci retracement of the 0.7165-0.7662 strong surge and 50-day SMA coincide with the support level.
Additionally, the Consumer Price Index (CPI) may be a contributing factor to the recent rise in the pair’s price (CPI).
The CPI for Australia will be released on April 27, 2022, by the Australian Bureau of Statistics (ABS). Comparing the last quarter of last year to the first quarter of this year, experts predict that it will stay at 1.7%.
The CPI measures changes in prices by comparing the retail prices of a representative selection of goods and services. When inflation takes place, the Australian dollar loses its purchasing power. Measurement of inflation and shifts in consumer purchasing patterns is provided by the CPI. Positive (or bullish) for the AUD is an increase in its value, whereas a decrease in its value is negative (or bearish).
Conclusion
As of Friday, the AUD/USD pair has fallen to a new multi-week low of 0.7263, only a hair above the end of the trading week.