AUDUSD is waiting to take the liquidity before the rally!

The AUD/USD maintains slight gains above 0.6500 after the release of Chinese inflation data, which were mixed. In January, China's Consumer Price Index (CPI) fell by 0.8%, compared to the expected -0.5%. The US dollar recorded further losses after reaching a new annual high above 104.00 in the US Dollar Index (DXY) earlier in the week, amidst investor realignment on a possible interest rate cut by the Federal Reserve (Fed) in May or June.

Returning to the domestic landscape, the AUD's performance remained supported by financial market evaluations of the Reserve Bank of Australia's (RBA) recent interest rate decision, which kept rates unchanged at 4.35% with a favorable tone, leaving open the possibility of a future rate hike. Additionally, the RBA revised downward its GDP growth forecasts for the foreseeable future, reflecting primarily a less optimistic view of consumer spending and real estate investments in the short term.

Furthermore, at a daily level, there is the possibility of a downward correction in price towards the 0.6450 level, considering it is already in a demand zone. It is believed that the price may have significant potential for a long position aiming to retest the bullish trendline broken during the last descent towards the 0.67 zone. Have a great day and happy trading.

הערה:

Good upward, waiting the right conditions to enter long

הערה:

Good price reaction in the demand zone, waiting for a structure break, then I will evaluate a possible entry at the retest.

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