AUD/USD at 72c Crossroads Ahead of Jackson Hole Speech

The AUD/USD currency pair is nearing a potentially pivotal level of 72c as Australia's Consumer Price Index (CPI) and US inflation data are set to be released, alongside the highly anticipated Jackson Hole speech by Fed Chair Kevin Warsh.

Australia's July CPI report will test whether inflation is genuinely losing momentum or simply pausing. The RBA has maintained a hawkish bias despite cooling inflation from its recent peak to 3.8%, with trimmed mean inflation remaining well above the central bank's 1-3% target band.

In contrast, US core PCE is equally important for Fed watchers, with the central bank maintaining a hawkish bias even though rates are expected to remain on hold at its next meeting. A hotter print would strengthen the case for another hike, potentially lifting US yields and the dollar, while a softer reading would ease some of those concerns.

The AUD/USD has been rising for several weeks, with the rally accelerating in recent times. However, the broader trend in weekly volatility remains lower, while resistance looms around 72c and the May high.