The Core PCE Price Index is a key indicator to watch as economists predict a 2.8% year-on-year increase in April. This data, along with expectations of a 0.3% rise in personal income and spending, can have significant implications for the AUD/USD exchange rate.
The rise in personal income and spending in March may lead to increased consumer demand and inflationary pressures. However, a potential hotter-than-expected US Personal Income and Outlays Report could affect investor sentiments and impact the AUD/USD exchange rate.
Investors are closely monitoring the reactions of FOMC members to the economic data. The AUD/USD is currently hovering above key moving averages, signaling bullish trends. A break above resistance levels could indicate a potential upward movement towards the $0.67500 handle.
The 50-day and 200-day EMAs are crucial support and resistance levels to consider. A break below the 50-day EMA may trigger further selling pressure, with the $0.65760 support level coming into play. However, buying pressure could intensify at this support level, particularly if the 200-day EMA acts as confluence.
With the AUD/USD exchange rate showing signs of bullish momentum, it is essential to keep an eye on upcoming economic data from China and the US. The interplay between market fundamentals and technical indicators will play a crucial role in determining the future direction of the AUD/USD exchange rate.
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