The risk-sensitive Australian dollar is directionless ahead of the U.S. consumer price index data report, due later today. The pair traded below the 0.700 level near the 50-day exponential moving average price. Investors are speculating a modest contraction in inflation after a series of interest rate hikes from the Federal Open Market committee. Analyzing the daily chart, the chances of a breakout near the 0.7000 level are high but require a significant economic catalyst. On the flip side, the price may encounter heavy resistance if the CPI data came in line with the investor’s expectations.
Ref: Trading View