AUDUSD is not bothered by the lower inflation in Australia

From many sides of the globe, we are receiving data showing that inflation may have peaked and from now on, those numbers will decline. One of those countries is Australia, where the CPI number came 6.9%, which was lower than expectations (7.6%) and lower than the number from the previous month (7.3%). It did not create any bigger moves on the AUD, with the AUDUSD staying in a tight range, waiting for a breakout.

AUDUSD is currently trading inside of a pennant pattern (red), which is created in an area filled with key supports and resistances. First of all, you can see that the price trades above the long-term down trendline (black), which now can be considered as support. Secondly, we are currently fighting with the 38,2% Fibonacci, which is playing the resistance role and is doing it very efficiently. In addition to this, AUDUSD is trying to break through the lows from July and September (yellow), with them being exactly in the middle of the pennant.

As you can see, we are really in a no-man’s land, waiting for a bigger movement in any direction. Price breaking above the upper line of the pennant will bring us a buy signal and price breaking below the lower line will bring a signal to sell. There is a chance that the direction will be chosen today, during the speech from Jerome Powell, so be careful during that time on the market!