AUD/USD ticks down to near 0.6700 ahead of US inflation data

💡 DMK Insight

The AUD/USD pair’s dip near 0.6700 signals a cautious market ahead of crucial CPI data. With the US Dollar gaining slightly, traders are bracing for potential volatility. The upcoming CPI release is pivotal, as inflation metrics could influence Fed policy and the dollar’s strength. A stronger-than-expected CPI might push AUD/USD further down, potentially testing support levels around 0.6650. Conversely, if CPI comes in lower, we could see a rebound towards 0.6750. Keep an eye on how the market reacts post-release, as this could set the tone for the rest of the week. Also, watch for shifts in risk sentiment, as they could impact correlated assets like commodities, particularly gold, which often moves inversely to the dollar. The real story is how traders position themselves ahead of this data. If you’re holding short positions, consider tightening stops to manage risk, while those looking to go long might want to wait for clearer signals post-CPI.