AUD/USD consolidates below three-year highs ahead of key CPI

💡 DMK Insight

AUD/USD is barely budging, and here’s why that matters: traders are caught in a tight range. With the pair hovering around 0.7060, the lack of volatility suggests market participants are waiting for clearer signals. Economic indicators from Australia and the U.S. are on the horizon, which could shake things up. If the Aussie dollar can break above 0.7080, it might attract buyers looking for a bullish trend, while a drop below 0.7040 could trigger selling pressure. Keep an eye on the upcoming employment data from Australia and any shifts in U.S. Federal Reserve policy, as these could provide the catalyst needed to break this stagnation. But here’s the flip side: if the market remains this tight, it could lead to a significant breakout in either direction. Traders should be prepared for potential volatility spikes, especially if unexpected news hits. Watch for those key levels closely; they could dictate your next move.