AUD/USD remains steady above 0.7100 amid hot inflation expectations

💡 DMK Insight

The AUD’s retreat from 0.7147 signals a critical moment for traders: the USD’s strength is back in play. With the recent US Nonfarm Payrolls data showing positive job growth, the market’s focus shifts to potential Fed rate hikes, which typically bolster the USD. This dynamic could lead to further downside for the AUD, especially if it breaks below key support levels. Traders should keep an eye on the 0.7100 mark as a psychological barrier; a drop below could trigger more selling pressure. Additionally, watch for any shifts in commodity prices, particularly iron ore, which heavily influences the AUD’s performance. If the USD continues to gain traction, it might also affect related pairs like AUD/NZD, amplifying volatility across the board. But here’s the flip side: if the AUD manages to hold above 0.7100, it could set up a potential rebound, especially if Australian economic indicators surprise positively. So, keep your charts updated and be ready to react to these levels.