AUDUSD Range Trading Ahead Of Today’s US CPI, Surveys Coming Up

AUDUSD range traded through most of Monday as information was light and markets wait for today’s US CPI. The pair strengthened to 0.6540 during the NY session but couldn’t hold the slight gains as US equities sold off and it eased back to the top of its range. AUDUSD is up 0.1% to 0.6531 and the USD index is flat.

• AUDUSD remains in a bearish trend with the latest break to new cycle lows confirming the resumption of the downtrend and opening 0.6453, November 17 low. The recent pause appears to be a bear flag formation. Initial resistance is at 0.6568.
• Aussie outperformed most of the G10 but kiwi underperformed and so AUDNZD rose 0.5% to 1.0653. AUDJPY is up 0.1% to 97.53. AUDEUR is 0.2% higher at 0.6062 and AUDGBP +0.1% to 0.5171.
• Equities were mixed with the S&P falling 0.1% but Euro stoxx rising 0.7% and the FTSE flat. Oil prices were mixed with Brent down 0.2% but WTI up 0.2%. Copper is 1.1% higher and iron ore is stronger at around $128.50/t.
• Today the RBA’s Head of Economic Analysis Kohler speaks. Westpac February consumer confidence and the NAB January business survey are released.