AUD/USD faces downward pressure near 0.6914 as strong US labor data boosts December Fed hike bets to 84.2%, with traders awaiting Wednesday's US CPI report.
The pair sits at 0.6925, just above key trend-line support at 0.6914 and below its 20-day EMA at 0.6977 with the RSI in the low-40s, a technically bearish setup. Hawkish Fed bets for December have risen to 84.2% after October NFP of 165K versus 65K expected, while headline and core US CPI are forecast higher at 3.9% and 2.8%. A break below 0.6914 would reinforce the downside; the article notes the CPI impact may be limited unless it sharply deviates.
The AUD/USD pair trades near 0.6925 as investors weigh hawkish Federal Reserve expectations against upcoming US inflation data. Markets have priced in an 84.2% probability of a 25 bps rate hike in December following a robust October jobs report showing 165K new positions. Technically, the pair remains under pressure while capped by the 20-day EMA at 0.6977.
Traders put the chance of a December Fed rate hike at 84.2% after stronger-than-expected October jobs data (165K vs 65K forecast), which favours the US Dollar, and the pair is capped by its 20-day EMA at 0.6977 with a break below support at 0.6914 seen opening lower levels.
The US CPI for October at 13:30 GMT (headline expected at 3.9% YoY, core 2.8%) and the Australian Consumer Inflation Expectations data on Thursday, which the article says could significantly shape RBA policy expectations.