AUD/USD Steadily Climbs Ahead Of US Inflation Report

The AUD/USD has printed gains for the third successive day, so far up 1.5% in the week as market players prepare for Thursday’s US inflation figures. At the time of writing, the AUD/USD is trading at 0.7185.

Wednesday’s economic docket is light, except for Fed speakers Michelle Bowman and Loretta Mester, leaving AUD/USD’s traders adrift of market sentiment plays or positioning ahead of new financial data. On Thursday, January’s US Consumer Price Index (CPI) is foreseen at 7.3%. The so-called Core CPI, excluding volatile items like food and energy, is estimated at 5.9%, both readings annually based.

During the week, John Edwards, a former Reserve Bank of Australia (RBA) member, said that the RBA could raise rates four times in quick succession late in 2022. The last week, RBA Governor Philip Lowe “conceded” that tightening of monetary policy was a “plausible scenario.” Nevertheless, he emphasized, as noted in the Statement of Monetary Policy as well and in the press conference, that the beard is prepared to be “patient.”

Earlier in the Asian session, the Australian economic docket featured the Westpac Consumer Confidence Index for February at 100.2, lower than the 102.2 reported in January. On Thursday, Building Permits for December is estimated to increase by 8.2%.

The AUD/USD is neutral biased, as shown by the daily moving averages. The AUD/USD pair is trading above the 50-DMA, which sits at 0.7163, but seems far from the 100-DMA at 0.7248, which intersects with a three-month-old downslope trendline around that area.