AUD/USD leads the way after Australian inflation spike, with EUR/USD and GBP/USD following
EUR/USD, GBP/USD and AUD/USD remain on track to benefit from dollar weakness, with a jump in Australian inflation bring particular outperformance for AUD.
EUR/USD continues to push higher
EUR/USD has managed to maintain its bullish trajectory despite recent volatility within equity markets. The growing disparity between eurozone and US inflation means that any inflation/interest rate concerns does not necessarily means the pair downside.
Today has seen a surprise jump in Australian inflation, while the Bank of Canada provides a fresh monetary policy decision to note. Nonetheless, unless we see price fall back through the $1.0766 swing-low, it looks likely that any declines are a short-term pullback before the bulls come back into play.
GBP/USD weakens from key resistance
GBP/USD has been struggling to maintain its upward trajectory over the course of this week, with the recent surge into the £1.2446 resistance level on early-Monday bringing a period of less convincing price action. The decline through the $1.2313 support level brings expectations of a wider pullback for the pair, with price at risk of another downturn to retrace the £1.2086-1.2448 move.
With that in mind, there is a risk of another pullback here, with the 61.8-76.4% zone providing a potential area for the bulls to come back into play.
AUD/USD drives higher after surprise inflation spike
AUD/USD has pushed sharply higher, with a surge in Australian inflation bringing a fresh five-month high for the pair. The 7.8% reading for Australian Consumer Price Index (CPI) represents a three-decade high, with rising energy costs and a resurgence in tourism pushing prices upward. This is certainly a warning for those that view prices as being on a one-way path lower.
For AUD/USD, this provides a push higher that brings us towards the $0.7137 resistance level established back in August 2022. The ability to drive through that point remains key here, with such a break bringing expectations of a bullish continuation. Nonetheless, any pullback would simply look like a retracement within a bullish trend unless the $0.6871 swing-low is broken.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets