Today, the last trading day of this week, the Australian dollar (AUD) inched high with the price of 0.7739 against the US dollar (USD).
The AUD/USD currency pair continuously be on the uncertainty track for the last two weeks.
As a result, it’s difficult to portray the true image of the pair. If it rises one day, we will see a red bearish candle on the graph the next.
Besides many other reasons, the recent increase in the pair’s price might be happening because of the Consumer Price Index (CPI).
Australian Bureau of Statistics will release the CPI on April 28, 2021. According to economists’ consensus, it might remain 0.9% in the first quarter of this year compared to the last quarter of last year.
The CPI compares the retail prices of a representative shopping basket of products and services to determine price movements. Inflation reduces the purchasing power of the Australian dollar. The CPI is a measure of inflation and shifts in spending patterns. A high reading for the AUD is positive (or bullish), whereas a low reading is negative (or bearish).
There is the horizontal support level after the pair’s price, which might push the AUD/USD pair toward the forward momentum.
Considering the pair are predicted to increase, selling the pair about 0.7821 could be a better short-term choice. However, due to the volatile nature of the market, prices can fluctuate, resulting in different outcomes.