$AUDUSD – Watching the 0.69 Handle, CPI Next Week

Hey everyone,

Just looking at $AUDUSD heading into the end of the week, and that 0.69 level is really sticking out to me. We've been dancing around it quite a bit, and while we've had a few tests above and below, it feels like it's becoming a pretty significant pivot. The daily candle yesterday closed just under it, and today we're seeing some pull back towards the open around 0.68907 after that push higher earlier. My sense is that a sustained break above 0.69, especially on a daily close, could see some momentum build towards 0.6950 or even 0.70. Conversely, if we can't reclaim and hold it, a deeper retracement towards 0.6850 or even the recent lows around 0.6830 wouldn't surprise me.

The risk for my read here, obviously, would be any major surprises from the CPI data out of the US next week. A significantly hotter or cooler print than expected could easily blow through these technical levels. Also keeping an eye on commodity prices, particularly iron ore, as they always have a sway on the Aussie. It's really a wait-and-see for me right now, just watching how price action develops around this key area before CPI throws another wrench in the works.