AUD/USD Falls to New Weekly Lows as US Consumer Prices Rise 5% in May

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The AUD/USD currency pair on Friday plunged to a new weekly low of 0.7688 at the back of Thursday’s US inflation data. The currency pair remains pinned within a regressive trend formation in the 60-min chart.

The pair traded several levels below the 100-hour moving average after attempting a late rebound. The rebound also pushed the currency pair closer to the normal trading zone after slipping to oversold levels of the 14-hour RSI.

AUD/USD Fundamentals Overview

From a fundamental perspective, the AUD/USD currency pair is trading at the back of a relatively busy period in the US market. On Thursday, the US consumer price for May rose 5% on a year-over-year basis and 0.6%% (MoM). Thus was better than what the market expected, 4.7% and 0.4%%, respectively.  

The US consumer price index ex-food and energy also rose significantly by 3.8% compared to an expectation of 3.4%. The (MoM) equivalent posted a change of 0.7% versus an expectation of 0.4%. On Friday, the preliminary Michigan Consumer Sentiment for June came in better than expected with 86.4 points compared to 84. The initial jobless claims for the week ending June 4 missed the expectation of 370k with 376k.

In Australia, the Westpac consumer confidence for June edged lower 5.2% compared to the previous period’s decline of 4.8%. New home sales for May soared 15.2% (MoM) compared to a decline of 54.4% in the previous period. Australia’s consumer expectations for June increased 4.4% compared to an estimate of 3.6%.

 AUD/USD Technical Analysis (the 60-min Chart)

Technically, the AUD/USD currency pair appears to be trading within a bearish regressive trend in the 60-min chart. The pair fell to oversold levels of the 14-hour RSI before bouncing back to move closer to the normal trading zone.

The bulls will look to drive the current rebound towards 0.7736 or higher to 0.7770. On the other hand, the bears will look to extend the pullback towards 0.7675 or lower to 0.7646.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to be trading within a sideways channel formation. The currency pair recently dropped to trade below the 100-day moving average. It could fall further.

The bears will target extended decline profits at around 0.7576 or lower at 0.7435. On the other hand, the bulls will look to push the pair higher towards 0.7822 or 0.7963.

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