8.27 FPG Australian Dollar Trend Analysis

AUDUSD H1

Yesterday, the Australian dollar continued to be blocked at the highs for the year following a bounce off the bottom of the US dollar. The market opened and began to decline, currently digesting Powell's dovish remarks at the Jackson Hole meeting last Friday. However, for the Australian dollar, more attention will be given to the release of tomorrow's Australian CPI inflation data. The market expects that the weighted CPI annual rate for July will drop from the previous value of 3.8% to 3.4%. If the final result shows that inflation remains high, it may further delay the market's expected timing of interest rate cuts by the Reserve Bank of Australia. Currently, Australia has become one of the major central banks that are adjusting interest rates latest, which has provided some support to the Australian dollar.

Technically, the resistance level of 0.68 for the Australian dollar remains evident this year. Yesterday, the price started to pull back and consolidate from Friday night's rebound. In the short term, it may retest the support level near 0.675, which was the previous top-bottom conversion. The Australian CPI data tomorrow and the US data on Thursday and Friday will have a significant impact on the Australian dollar in the short term. Currently, the trend may transition from the previous strong rally to consolidation. Pay attention to the year's high point of 0.68, as breaking the trend may lead to a resumption of the upward trend.

The first resistance level is at 0.678, the second resistance level is at 0.679, and the third resistance level is at 0.680.

The first support level is at 0.675, the second support level is at 0.673, and the third support level is at 0.671.

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