When it comes to navigating the Stock Market, keeping a close eye on inflation, the economic outlook, and the timing of a Fed rate cut is crucial. At Extreme Investor Network, we understand the importance of staying informed and making informed investment decisions based on the latest data and trends.
Recently, the FOMC Meeting Minutes and key US labor market and service sector data have been front and center in shaping investor sentiment towards a potential Fed rate cut in September. However, the University of Michigan Survey of Consumers has provided some relief by showing a slight decrease in consumer inflation expectations for the year ahead.
This data has had a noticeable impact on the probability of the Fed standing pat in September, as reflected by the CME FedWatch Tool. It’s essential to consider all these factors when evaluating market trends and making investment decisions.
Looking ahead, our short-term forecast indicates that the AUD/USD trends could be influenced by upcoming Australian retail sales and inflation numbers, as well as the US Personal Income and Outlays Report. A hotter-than-expected inflation rate in Australia could spark speculation about an RBA rate hike, potentially strengthening the Aussie dollar.
When analyzing the AUD/USD Price Action, we see that the currency pair is currently hovering above the 50-day and 200-day EMAs, signaling a bullish outlook. A break above the $0.66500 handle could pave the way for a move towards the $0.67003 resistance level, with further potential for reaching the $0.67500 handle. On the other hand, a break below key support levels could give the bears an opportunity to push the pair lower.
As you monitor the Industrial profit numbers from China and FOMC member commentary, keep in mind that technical indicators such as the 14-period Daily RSI reading can also provide valuable insights into potential price movements. At Extreme Investor Network, we provide comprehensive analysis and expert insights to help you navigate the Stock Market with confidence. Stay tuned for more updates and expert analysis to make informed investment decisions.