AUD/USD extended gains for a second session on Wednesday, reaching its highest level since 23 September near 0.7050–0.7055 in Asian trading after stronger Australian inflation data. The move suggests a break above the 100-day Simple Moving Average (SMA), though positioning remained restrained ahead of the two-day FOMC meeting.
Australian Inflation Data and RBA Outlook
Australian Bureau of Statistics figures showed CPI rising 0.8% in September versus 0.4% previously and a 0.7% consensus, while the annual rate increased to 4.3% from 4.0%, above a 4.2% forecast. Annual trimmed mean inflation stayed above the Reserve Bank of Australia’s 2–3% target, reinforcing expectations of a November rate rise and supporting the AUD.
US Dollar Strength and Technical Levels
The USD, however, climbed to a two-week high on expectations the Federal Reserve may raise rates again before year-end, with geopolitical uncertainty supporting safe-haven demand and limiting AUD/USD’s upside. Markets expect no change at this meeting, focusing on the policy statement and Chair Kevin Warsh’s press conference. Technically, price held above the 100-day SMA at 0.7033 but remained capped below 0.7066 and 0.7106; support sits at 0.7025, then 0.6975 and 0.6893.
