Australian Dollar gains capped near 0.6300 ahead of CPI and pre-election budget
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AUD/USD was seen trading around the 0.6300 zone during Tuesday’s American session, modestly higher on the day. Despite the bounce, mixed technical signals and cautious risk tone keep gains limited for now. Key resistance emerges around 0.6310/0.6325, while support levels appear clustered near the 0.6290 region. The Australian Dollar (AUD) attempted a rebound on Tuesday, with AUD/USD recovering toward the 0.6300 mark during the American session. The uptick, however, appeared modest and capped as the pair struggled to gain follow-through amid uncertainty around global trade developments, a cautious US Dollar (USD) backdrop and mixed technical signals. Price action unfolded in a tight range as investors assessed prospects for Australian fiscal policy ahead of the upcoming federal budget and closely monitored developments in US tariff policy. The broader outlook for the Aussie remains fragile, but expectations that the Reserve Bank of Australia (RBA) may already have priced in near-term rate moves and stronger-than-expected domestic data continue to offer modest support. Daily digest market movers: Australian Dollar steadies as traders eye CPI data and budget The AUD extended Monday’s gains and stabilized around the 0.6300 zone as traders digested recent improvements in risk sentiment while preparing for a key domestic data week. Preliminary PMI figures and reduced tariff anxiety helped reduce some pressure on risk-linked currencies, despite persistent global trade frictions. Market focus has shifted to the upcoming release of Australia’s Monthly CPI Indicator for February, expected on March 26, and the 2025–26 Federal Budget, due March 25. With national elections legally required by mid-May, the Budget is seen as a potential turning point in economic strategy. Polls suggest a close race between the current Labor government and the center-right opposition. The US Dollar lost some ground, giving up part of last week’s advance. However, the Greenback remained firm overall as Federal…
Filed under: News - @ March 25, 2025 11:28 pm