Analysis of the 9.12 FPG Australian dollar trend

AUDUSD H4

Yesterday, the CPI data for the United States was released, and the data showed that inflation continued to fall and was better than expected, reducing market expectations for a 50 basis point interest rate cut by the Federal Reserve 6 days later. The rise in the US dollar index should have led to a decline in the Australian dollar, but instead the Australian dollar rose, becoming the only currency to rise in the short term after the data last night along with the Canadian dollar. As Australia's major export, the mining industry has seen a decrease in exports due to the decline in demand in the Chinese real estate and infrastructure markets, which is reflected in Australia's trade deficit and stagnant GDP, indicating that the Australian economy is not prosperous. The Australian Treasurer's planned visit to China in September has to some extent boosted the future potential of the Australian economy. The price of iron ore also rose 2.5% last night and is currently above $90.

From a technical perspective, the Australian dollar has tested support near 0.664 for three consecutive days, breaking below the lowest point of 0.662 before rebounding quickly after the data was released in the evening, and closing near 0.668. The price is still oscillating within the range mentioned earlier. Pay attention to the resistance at 0.668.

There is a resistance at 0.668, a second resistance at 0.670, and a third resistance at 0.671.

The first support line below is at 0.666, the second support line is at 0.664, and the third support line is at 0.662.

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