Post #15814

AUD/USD Is Pressing Against Key Resistance AUD/USD is trading near recent highs, pressing into a clear resistance zone around 0.7128. Price is easing slightly as the US Dollar finds footing after solid labor data. This is a decision area — either we break and extend higher, or stall and rotate lower if USD strength builds. The Aussie remains supported domestically. Inflation expectations jumped to 5% in February — the highest in nearly three years — reinforcing the idea that the RBA may not be done tightening. Last week’s 25bp hike to 3.85% marked the first increase in over two years, and officials have kept the door open for more if inflation stays sticky. On the US side, stronger-than-expected NFP (+130K vs 70K expected) and a dip in unemployment to 4.3% helped the dollar stabilize. Jobless claims also came in firm. As a result, near-term Fed cut expectations have been pushed back, with June now the more likely starting point. All eyes now shift to tomorrow's CPI report. - Alan