CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

​​​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.

AUD/USD Source: Bloomberg

​​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.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

​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.

GBP/USD Source: ProRealTime
GBP/USD Source: ProRealTime

​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.

AUD/USD chart Source: ProRealTime
AUD/USD chart Source: ProRealTime

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