Daily Forex News and Watchlist: AUD/USD

Volatility has picked up for dollar pairs lately, but can this be enough to bust AUD/USD out of its short-term range soon?

Check out these nearby support and resistance levels I’m watching!

Before moving on, ICYMI, yesterday’s watchlist looked at a potential range support bounce on USD/CHF. Be sure to check out if it’s still a good play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

New Zealand building consents slumped 2.6% month-over-month in April, following earlier downgraded 6.6% increase

U.K. BRC price shop index accelerated from 8.8% to record high of 9.0% year-over-year in May to reflect even stronger pace of inflation in retail stores

Japan’s unemployment rate improved from 2.8% to 2.6% in April versus consensus at 2.7%

BOJ Governor Ueda reiterates that they have not yet achieved sustainable 2% inflation, so central bank will maintain easy policy

Australian building approvals tumbled 8.1% month-over-month in April versus estimated 2.3% rebound, following earlier downgraded 1.0% slump

Swiss Q1 GDP report showed that economy expanded 0.3% quarter-over-quarter versus projected 0.1% growth figure and earlier flat reading

Switzerland’s KOF economic barometer fell from downgraded 96.1 figure to 90.2 in May to reflect worsening conditions versus 95.7 forecast

Spanish flash CPI slowed from 4.1% year-over-year to 3.2% in April versus 3.6% forecast

Price Action News

Overlay of USD Pairs 15-min

Overlay of USD Pairs 15-min

After treading mostly sideways during the earlier U.S. session, the Greenback saw another pickup in volatility as it tossed and turned against its rivals during Asian market hours.

There was no clear catalyst for these sudden moves other than the change in market liquidity coming from the bank holidays in the previous day.

Still, the dollar managed to regain its footing as the day went on, likely buoyed by optimism from the recently struck U.S. debt ceiling agreement.

U.S. CB consumer confidence index at 2:00 pm GMT
RBA Governor Lowe’s testimony at 11:00 pm GMT
Japanese industrial production and retail sales data at 11:50 pm GMT
Australia’s monthly CPI report at 1:30 am GMT

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

AUD/USD 15-min Forex Chart

AUD/USD 15-min Forex Chart by TV

AUD/USD has been pacing back and forth between support at the .6500 major psychological mark and resistance around the .6550 handle.

Price just bounced sharply off the floor and might be setting its sights back on the ceiling, which happens to line up with R1.

AUD price action could hinge on a couple of top-tier catalysts lined up, namely RBA Governor Lowe’s speech and the release of Australia’s monthly CPI.

Hawkish remarks and a stronger than expected inflation report might be enough to bust AUD/USD out of its range and onto the next potential resistance at R2 (.6570).

On the other hand, any indication that the RBA could sit on its hands for much longer could spur downside for the Aussie, possibly triggering a breakdown to S2 (.6480) or lower.

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