Welcome to Extreme Investor Network, where we provide cutting-edge analysis and insights into the world of the Stock Market, trading, and Wall Street. Today, we take a closer look at the impact of upward personal income/spending trends and hotter-than-expected inflation numbers on the September Fed rate cut.
A more hawkish Fed rate path could raise borrowing costs and lower disposable income, potentially dampening consumer spending and inflationary pressures. This could have implications for the overall market sentiment and investment strategies.
Additionally, keep an eye on the finalized Michigan Consumer Sentiment numbers for April, as any upward revisions could signal a shift in consumer confidence and inflation expectations.
In terms of the short-term forecast, the AUD/USD trends will be influenced by the US Personal Income and Expenditures Report. Better-than-expected numbers could alter investor expectations of a September Fed rate cut, while Australian producer prices will impact sentiment towards the RBA rate path.
Looking at the AUD/USD price action, the currency pair is currently below the 50-day and 200-day EMAs, signaling a bearish trend. A breakout above the 50-day EMA could push the AUD/USD towards the $0.65760 resistance level, with further upside potential towards the $0.66 handle.
On the flip side, a drop below the $0.64500 handle could lead to further downside towards the $0.64582 support level and potentially the $0.62713 support level. The 14-period Daily RSI reading of 52.07 indicates a potential return to the $0.66 handle before entering overbought territory.
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