• Australian Consumer Inflation Expectations are foreseen in June at 4.2% from 3.4% in May.
• Weaker equities prevented Aussie from rallying further after a dovish Fed.
• AUD/USD firm above 0.7000 and heading towards the 0.7100 price zone.

The AUD/USD pair peaked at 0.7063 within the Fed’s monetary policy announcement, retreating afterward as US indexes were unable to hold on to their initial momentum. Discouraging Australian and Chinese data released at the beginning of the day had a limited impact on the pair, which fell to an intraday low at 0.6923. The Australian June Westpac Consumer Confidence printed 6.3%, down from 16.4% in May. Home Loans in April fell by 4.4%, while Investment Lending for Homes declined by 4.2%, both much worse than the previous monthly figures.

As for China, inflation in the country was down by 0.8% in the month, and up by 2.4% when compared to a year earlier. The Producer Price Index in the same month was down by 3.7%. This Thursday, Australia will publish Consumer Inflation Expectations, foreseen in June at 4.2% from 3.4% in May.

AUD/USD short-term technical outlook

The AUD/USD pair is trading around 0.7010 as the US session comes to an end, offering a neutral-to-bullish stance. The 4-hour chart shows that the pair held above a mildly bullish 20 SMA, while well above the larger ones. Technical indicators head higher, although the Momentum remains within neutral levels. Bulls will likely insist and buy the dips as long as the pair holds above the 0.6900 price zone.

Support levels: 0.7010 0.6970 0.6920

Resistance levels: 0.7060 0.7100 0.7140

View Live Chart for the AUD/USD