Home Forex AUDUSD’s rally hits resistance at 0.6600, pulls back to 0.6555

AUDUSD’s rally hits resistance at 0.6600, pulls back to 0.6555

by ForexGuy
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  • The Australian dollar rally from the 0.6385 area capped at 0.6600.
  • The pair is still up 2.2% on the day, breaking above the previous resistance level of 0.6540.
  • Greenback Weakness After US CPI Data Boosts AUD.

The Aussie dollar’s rise from the session low of 0.6385 is capped at a fresh 6-week high just a few pips behind 0.6600, while the pair remains stable at the upper range of 0.6500.

On the daily chart, the pair is 2.2% above the open price level. US CPI data was released and Australia surged in Thursday’s US session after breaking the top of the trading range at 0.6545 for the past six weeks.

US Dollar Plunges on Weak CPI Data

U.S. inflation slowed more than expected in October, sending U.S. Treasury yields and the dollar lower on hopes the Fed could move to a more moderate rate hike over the next few months. , the stock market rose.

Overall CPI rose at a pace of 0.4%, unchanged from September, defying market expectations of an acceleration to 0.6%. Core inflation, the Fed’s favorite measure of inflation, eased to 0.3% from 0.6% the previous month.

Additionally, US weekly unemployment insurance claims showed an increase of 225,000 claims in the week ending November 4, up from 228,000 the previous week and exceeding market expectations of 220,000. These numbers suggest some easing in the labor market and provide additional reason to expect the Fed to ease its tightening plan.

Notable technical level

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