AUD Surges as RBA Hike Expectations Rise on Strong CPI
The Australian Dollar (AUD) has been gaining strength against the US Dollar (USD), thanks to stronger economic indicators and resilient household spending. According to a recent analysis by OCBC FX Strategist Sim Moh Siong, a stronger Australian Consumer Price Index (CPI) and resilient household spending have revived expectations of another Reserve Bank of Australia (RBA) hike.
This has helped the AUD/USD retest resistance near 0.7180-0.7200. Meanwhile, Francesco Pesole from ING highlights that the Australian Dollar is the only G10 currency gaining this week as hotter July inflation and strong household spending fuel hawkish RBA expectations.
The AUD/USD has been trading at 0.7127, with a price range of 0.7151-0.71706 over the past day. The key indicators show oversold levels in the short-term but neutral to buy signals in the medium-term.