After last Friday’s NFP report blew estimates out of the water, this week’s US inflation data will play a big role in market expectations for the Fed’s next interest rate hike.
This could cause a spike in US Dollar volatility over the coming days, some of which can already be seen in AUD/USD, as the pair rallied over 1.1% on Monday, reversing early losses to establish a range between 0.6900 and 0.7000.
Wednesday’s CPI print will likely dictate near-term direction, and could help the pair target a break of either of these two key levels, and signal an end to the last few days of choppy, sideways trading.
Check out this article for a deeper insight into what to expect from this week’s inflation data, and how AUD/USD could react: