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>>AUD/USD Resists Downward Pressure, Staying Strong as the US Dollar Falls Despite Persistent PPI Data

AUD/USD Resists Downward Pressure, Staying Strong as the US Dollar Falls Despite Persistent PPI Data

crypthub

about 10 hours ago

AUD/USD Resilience

The AUD/USD pair stayed above 0.6650 this week despite a retreat in the US Dollar. Traders saw the pair hold firm across Sydney and New York markets. The move contradicts the usual boost a strong US PPI gives the greenback. This indicates other macro forces are outweighing the PPI‑Dollar link.

US PPI Surprise and Dollar Reaction

February PPI rose 0.5% month‑over‑month and 2.1% year‑over‑year, beating forecasts. Yet the US Dollar Index slipped about 0.4% after the release. Analysts attribute the dip to a perceived peak in inflation and a cautious Fed stance. Heavy net‑long dollar positions also prompted a sell‑the‑fact unwind.

Supportive Drivers for the Australian Dollar

Commodity prices, especially iron ore, remain stable above $120 per ton, backing the AUD. China’s stimulus for property and manufacturing lifts export demand. The Reserve Bank of Australia keeps a hawkish, data‑dependent policy, preserving yield appeal. Domestic data show low unemployment and resilient consumer spending.

Technical Outlook

AUD/USD is holding above the 0.6600 Fibonacci level, a key technical support. A break above 0.6720‑0.6750 could trigger a bullish move, while a dip below 0.6580 may target 0.6450. RSI stays below 60, leaving room for upside. Market focus now rests on the next Fed comment or Australian inflation release.