Any deviation from US CPI median forecast likely to spark significant USD movement – Westpac

AUD/USD was net almost unchanged last week around 0.69. This week's crowded calendar includes US Consumer Price Index (CPI) report, which could spark USD volatility, economists at Westpac report.

Initial AUD/USD support lies around 0.6850/60

“AUD/USD’s sharpest movement of the week could well occur in response to the US inflation report on Tuesday. 

“Any deviation from the median forecast of 6.2%yr overall, 5.5%yr ex-food and energy seems likely to spark significant US Dollar movement.”

“Ahead of the CPI, initial AUD/USD support lies around 0.6850/60, resistance around 0.7080.”