The Aussie Dollar seems to have met some tailwinds and appears to have resumed its trip toward the 0.7000 threshold. So far, the constructive tone should remain intact while above the key 200-day SMA.
The June Consumer Price Index (CPI) fell 0.4% on the month, the largest one-month decline since April 2020, dragging the annual rate to 3.5% from May’s 4.2% and snapping a three-month acceleration streak. Core prices went nowhere, flat on the month and down to 2.6% YoY, both under consensus.
The US Dollar (USD) kicked off the day’s rally on the back of risk aversion, but abruptly changed course early in the American session. The XAU/USD pair, which traded as low as $3,983.85, jumped roughly $100 and peaked just above $4,100 before stabilizing nearby.
Gold is recovering a part of the previous 3% slide to two-week lows near $3,985, back above the $4,000 level in Asia on Tuesday. Gold traders brace for intense volatility on the US Consumer Price Index (CPI) data release, followed by Federal Reserve (Fed) Chair Kevin Warsh’s testimony.
The Aussie Dollar remains unable to find sustainable upside traction, keeping its trade below the key 0.7000 threshold for now. So far, the constructive tone should remain intact while above the key 200-day SMA.
As the US national debt surges past $39 trillion, policymakers face an unsustainable economic trajectory that threatens the global financial system.