Daily Forex News and Watchlist: AUD/USD

We’ve got the U.S. core PCE price index coming up next!

I’m hoping this could spur a correction on AUD/USD since the pair has been on a steady uptrend.

Before moving on, ICYMI, yesterday’s watchlist looked at USD/JPY’s uptrend ahead of the U.S. advanced GDP release. Be sure to check out if it’s still a valid play!

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

Fresh Market Headlines & Economic Data:

U.S. advanced GDP rose by 2.9% q/q vs. 2.6% forecast in Q4 2022

U.S. advanced GDP price index at 3.5% q/q vs. 3.2% estimate in Q4

EU considers capping Russian diesel prices at $100/barrel

Tokyo core CPI accelerated from 3.9% to 4.3% y/y in Jan

Japanese PM Kishida warns that return to deflation cannot be ruled out

New Zealand’s ANZ business confidence index improved from -70.2 to -50.2 in Jan

Australian import prices rose 1.8% q/q vs. 1.3% forecast in Q4 2022

Australia’s PPI slowed from 1.9% q/q to 0.7% vs. 1.7% forecast in Q4 2022

U.S. core PCE price index at 1:30 pm GMT
U.S. personal income and spending at 1:30 pm GMT
U.S. pending home sales at 3:00 pm GMT

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

What to Watch: AUD/USD

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart by TradingView

Later today we’ll get a glimpse of the Fed’s preferred inflation measure. That’s the U.S. core PCE price index yo!

Now analysts are expecting to see a slight pickup in price pressures for December, which might be enough to keep the Fed in a rate-hiking mood.

If that’s the case, the U.S. dollar could rake in more gains, especially since the advanced GDP earlier on printed upside surprises.

This could be enough to take AUD/USD back down to the bottom of its ascending channel on the hourly time frame, which might be a good level to hop in a bullish move.

Not only does it line up with the .7000 major psychological mark and the 50% Fibonacci retracement level, but it’s also near the 200 SMA dynamic support!

Aussie bulls might be waiting to charge around this area of interest, as the Land Down Under has also printed upbeat inflation figures earlier this week.

Stochastic is on the move down for now, suggesting that the correction could carry on while the pair retreats from the channel top.

The 100 SMA is safely above the 200 SMA, though, so the uptrend is more likely to resume than to reverse.

Just don’t forget to check out the average AUD/USD volatility when trading this one!

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