The Australian Dollar has strengthened following the release of higher-than-expected CPI data for Q3. The data showed that Australia’s CPI increased to 1.2%, surpassing the market consensus of 1.1%. This has raised expectations of a 25 basis point interest rate hike by the Reserve Bank of Australia (RBA) at its next policy meeting in November. The AUD/USD pair has also received a boost from hawkish comments made by RBA Governor Michele Bullock. This has led to the Australian Dollar trading higher for the third consecutive day. The US Dollar has also received support from upbeat PMI figures from the United States. However, the drop in US Treasury yields may put downward pressure on the USD. Market participants will closely monitor RBA Governor Bullock’s remarks on the Australian economy as she testifies before the Senate Economics Legislative Committee. The US Q3 GDP, US Core PCE, and Australia’s PPI will also be closely watched. From a technical perspective, the Australian Dollar is hovering just below the major resistance level at 0.6400. A breakthrough above this level could potentially push the AUD/USD pair to the 23.6% Fibonacci retracement level at 0.6429. On the downside, immediate support can be found at the seven-day Exponential Moving Average (EMA) at 0.6353, followed by the major level at 0.6300.
