AUD/USD Holds Above 61.8% Fibo Support at 0.7000 After Soft US CPI
The AUD/USD pair edged higher to near 0.7007 during European trading on Thursday, finding support above the 61.8% Fibonacci retracement level at 0.7000. Gains came as the US dollar weakened following softer-than-expected US CPI data.
The Australian dollar traded 0.14% higher against the US dollar on Thursday, hovering near 0.7007 during the European session. The pair found a floor at the key 61.8% Fibonacci retracement level of 0.7000, which acted as support.
The uptick was driven by a softer US dollar after the release of lower-than-expected monthly US Consumer Price Index (CPI) data. The weaker inflation reading weighed on the greenback, providing a tailwind for AUD/USD.
Technical traders will watch whether the pair can sustain above the 0.7000 handle, as a break below could expose deeper support levels. The current price action suggests a short-term bullish bias, contingent on the dollar's reaction to the CPI print.
Source: FXStreet Forex News