AUD/USD Struggles Below Key Moving Average Amid Mixed Inflation Signals

The Australian dollar’s prolonged slump against the US dollar continues, with the AUD/USD pair failing to sustain momentum above the 100-day moving average. A brief rally fueled by delayed US tariffs and steady CPI data proved short-lived, as resistance at 0.6440 capped gains.

Australia’s inflation data presents a conundrum for policymakers. While price stability might normally support the currency, weakening growth prospects have markets anticipating potential rate cuts from the Reserve Bank of Australia. This monetary policy uncertainty compounds the AUD’s challenges against a resilient US dollar.

Currency traders appear caught between technical resistance and fundamental crosscurrents. The pair’s inability to break through the 100 SMA suggests bearish sentiment prevails, despite temporary reprieves from macroeconomic developments.