Ausforex foreign exchange market is an important trend! This week, before the European and American events, hedge funds are bearish on the euro at the highest level since January

SEPTEMBER 12 - The Australian dollar continued its downward trend as the US dollar strengthened. The Australian dollar fell to a low of 0.6380 against the dollar last week, its lowest level since November 2022, as investors refocused on upcoming US inflation data. It is down more than 10% from this year's high.

The Aussie continued its downward trend as the dollar strengthened. The Aussie fell to a low of 0.6380 against the dollar last week, its lowest level since November 2022, as investors refocused on upcoming US inflation data. It is down more than 10% from this year's high.

Despite the dovish tone of recent comments from Federal Reserve officials, the sell-off in the Aussie-dollar pair has continued. Lori Logan, president of the Dallas Fed, said in a statement that while the bank had not yet won the fight against inflation, the complex economic environment required a carefully calibrated approach.

Other Federal Reserve officials who support a rate pause at the next meeting include John Williams and Christopher Waller. As a result, investors and traders will be closely watching data on U.S. consumer inflation due on Wednesday. Economists surveyed expect the data to show consumer prices rose again in August.

Specifically, they expect headline CPI to rise from 0.2% in July to 0.6% in August. If that happens, it would be the second consecutive month of rising inflation. They also expect inflation to rise from 3.2% to 3.6%. On the other hand, analysts expect core inflation to fall from 4.7% to 4.3% this month.

Another catalyst for the Aussie-dollar pair was crude oil prices, a major driver of inflation. Brent crude, the international benchmark, was trading at $90.44, while West Texas Intermediate rose to $87.23. Oil prices are up more than 20 percent from their lows in June.

Technical analysis of the AUD/USD currency pair trading

The AUD/USD pair formed a double-top pattern of 0.6892 in June and July. It then fell below the neckline of this pattern at 0.6600 on August 1. The pair also broke the important support level of 0.6454, which was the lowest level on May 31.

The pair fell below the 25-period volume-weighted moving average (VWMA), while the Relative Strength Index (RSI) fell below the neutral point. Therefore, the pair is likely to continue moving lower, with the next level to watch at 0.6300, the first support for the Woody Pivot Point.

At 12:47 Beijing time, the Australian dollar was trading at 0.6427/29 against the US dollar.