AUD/USD review of August 11, 2022
On Wednesday, after the release of the US inflation report, AUD/USD showed a sharp strengthening. According to the report, in July the consumer price index fell from 9.1% to 8.5% with a forecast of 8.7%, and core inflation remained at 5.9%.
Today, the pair slightly corrects yesterday's growth, retreating from local highs.
For investors, the main issue is the prospect of the Fed's monetary policy. Buyers of risky assets believe that inflation in the US has peaked and, after a number of measures taken by the Fed, has moved to a decline. Consequently, the US regulator will not aggressively raise rates or even take a break from monetary restriction.
USD supporters claim that the Fed does not intend to abandon tightening monetary policy, as inflation in the US remains at record levels and is far from the 2% target.
Statistics on consumer price expectations have been released in Australia today. The August indicator was revised downwards from 6.3% to 5.9%. It is possible that in the near future the Reserve Bank of Australia will move to a softer position.
The RBA has announced the launch of a digital version of the national currency. During the year, specialists from various fields will study the potential and effectiveness of the use of cryptocurrencies, solve legal and regulatory issues. The results of the experiment will be announced in August 2023.
AUD/USD Technical Analysis
The CCI indicator and Bollinger Bands show an upward trend.
The MACD indicator is growing in a positive area and retains a strong bullish signal.
The stochastic oscillator from the bottom up is testing the 80 level for a breakdown%
With a confident breakdown above 0.7107, we open long positions with a take profit of 0.7202. We set the stop loss at 0.7050.
Fixing the pair below the 0.7050 support will be a signal for the formation of sales with a target of 0.6950. We will place the stop loss at 0.7107.