Australian Dollar gains as US Dollar remains weak after high-tier data release

• AUD/USD pair rises to 0.6480 on Wednesday.
• Aussie benefits from US Dollar weakness despite soft Australian CPI.
• PCE data from the US meets expectations for inflation.

In Wednesday's session, the AUD/USD rose to 0.6480 as the US Dollar remained weak following the release of high-tier economic data. This comes despite Wednesday's publication of subdued Australian Consumer Price Index (CPI) inflation figures, which had previously limited the Aussie's rise. Nonetheless, the broader weakness in the Greenback continues to support the Australian Dollar.

The AUD/USD pair has struggled in recent trading sessions, weighed down by mixed Australian economic data, a hawkish Reserve Bank of Australia (RBA), and persistent US Dollar strength. The Aussie will still be sensitive to both local and American data as the monetary policy divergences between the RBA and the Federal Reserve (Fed) might shake the pair.

Daily digest market movers: Australian Dollar gains capped by Australian data, but USD weakness helps

• The Aussie’s rise occurred despite subdued Australian CPI inflation data.
• October's Australian CPI remained unchanged at 2.1%, below expectations, while the trimmed Mean CPI rose to 3.5% in October from 3.2% in September.
• Energy prices significantly contributed to the low headline inflation, falling by 35.6%. Petrol prices declined by 11.5%, impacting headline inflation.
• The RBA is unlikely to alter interest rates since these factors are deemed transitory.
• On the US front, the Gross Domestic Product from Q3 was reported at 2.8% as expected.
• Other data showed that Initial Jobless Claims declined to 213K, surpassing expectations, while Durable Goods Orders rose by a modest 0.2% in October, below forecasts.
• The highlight was the the Personal Consumption Expenditures (PCE) Price Index, which rose 0.2% MoM and 2.3% YoY, in line with expectations.
• Core PCE Price Index increased by 2.8% YoY, meeting market estimates.
• Following the data, the odds of a cut by the Fed in December remain high at around 60% but declined significantly in November, which favoured the Greenback’s rise.

AUD/USD technical outlook: Pair remains capped by 20-day SMA, with indicators recovering but still negative

The AUD/USD pair's indicators have shown a slight uptick but remain in negative territory, indicating ongoing bearish momentum. The RSI is hovering around the 40 region, while the MACD histogram remains red, reinforcing the downtrend.

The pair remains capped by the 20-day Simple Moving Average (SMA) acting as a significant resistance level. This technical outlook suggests that the AUD/USD may continue to face selling pressure in the near term, with further declines likely if the mentioned SMA isn’t conquered.