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MACRO REPORT
The AUD/USD pair continues to pull back after registering an eight-day advance for the first time since 2020.
The lack of noteworthy news at the start of the week has left traders uninspired, causing the Aussie dollar to float aimlessly. The AUD/USD pair appears to be reversing course ahead of the monthly high of 0.6623, as it forms a pattern of lower highs and lows, indicating struggles to maintain its recent gains from the February low of 0.6443.
When writing, the pair trades at 0.65461, losing 0.53% on the day.
Looking ahead today, the market’s attention is focused on the upcoming Aussie data releases, particularly the CPI figures. Expected to rise to 3.5% in January from 3.4% in the previous month, these figures could sway the AUD/USD pair.
A rise in inflation could lead to a bullish reaction in AUD/USD, giving the RBA more reason to maintain its current hawkish policy stance. Conversely, slowed CPI growth would weigh on the AUD/USD pair, pressuring the RBA to reconsider its forward guidance.
Elsewhere, the RBNZ is set to hold its first monetary policy meeting of 2024 today, with expectations pointing to the central bank keeping its Official Cash Rate (OCR) steady at 5.50%. This would mark the fifth consecutive meeting with no rate adjustment.
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