AUD/USD Waits on Australian Inflation Data for Next Move
The AUD/USD exchange rate has traded within a relatively narrow range of 16.5 pips on Tuesday, oscillating between 0.71425 and 0.7159.
This range is slightly above Monday's low and below Friday's high at 0.7180, which was also the highest point reached in 11 weeks and a key resistance level at 76.4% of the Fibonacci retracement.
Australia's inflation data for July is due to be released on Wednesday at 0130 GMT, with forecasts indicating a year-over-year (YY) Consumer Price Index (CPI) of 3.3%, and a trimmed mean forecast of 3.5%. A higher-than-expected reading could lead to an increase in the AUD/USD exchange rate.
The Reserve Bank of Australia's minutes from their August 11 meeting showed that policymakers debated raising interest rates before ultimately deciding on a unanimous hold, which may have contributed to the current market uncertainty surrounding the AUD/USD.