AUD/USD headed 0.6940 and beyond?

By FXStreet FXStreet (Guatemala) – AUD/USD is currently trading at 0.7276 with a high of and 0.7339 and a low of 0.7249.

AUD/USD is consolidating at the end of the week while the price has been set in a bullish drift, crystallizing at the 200 SMA on the hourly chart. It has been an active week for the major commodity currency, with speculation rising for a move from the RBA before the end of the year, capping the Aussie’s advance at the 0.73 handle.

The greenback was rescued on the latest CPI’s with the likelihood of a stronger PCE, being the Fed’s preferred measure of inflation. “Our forecast for core PCE prices in September implies an increase in the 3-month rate of core PCE inflation from 1.3% in August, to 1.5% in September,” explained analysts at Nomura and added, “This may bolster the FOMC’s confidence in its outlook for inflation. In that sense, we think that today’s CPI, by itself, should raise, at least to some degree, the likelihood for liftoff in December.”

AUD/USD’s bearish outlook

Technically AUD/USD, bearish signals mounting as explained here by analysts at Scotiabank.

Meanwhile, Karen Jones, chief analyst at Commerzbank explained levels heading lower. “The 55 day ma …read more

Source:: FX Street