AUD/USD Hangs in Balance Ahead of Inflation Data

The AUD/USD continues to consolidate near its 50 Simple Moving Average (SMA) after the Reserve Bank of Australia's decision to keep interest rates on hold. This cautious stance is likely due to the central bank's inflation outlook, which may be influenced by upcoming U.S. inflation readings.

On Wednesday, the Bureau of Labor Statistics will publish consumer prices index (CPI) numbers, with analysts expecting a 0.2% increase in the July core CPI print. This could lead to a reassessment of interest rate expectations and potentially support a bump in the Greenback.

The AUD/USD has been tracking higher within a rising wedge pattern, but traders are holding their breath ahead of this week's key economic data releases. The pair's price fell below its 50 MA after the RBA decision but found buying interest near key support at 0.7050.