AUD/USD rises on mixed US inflation, jobs data ahead of PPI

• AUD/USD rebounds after US inflation came in higher than expected, but a soft jobs report slowed the Greenback’s advance.
• US jobless claims rose to 258K, while Fed officials suggested more easing, with Atlanta Fed’s Bostic open to holding rates steady.
• Australian economic focus shifts to next week’s labor market data and a speech by RBA’s Sarah Hunter for further policy clues.

The Australian Dollar snaps five straight days of losses and climbs over 0.35% as data showed that inflation in the United States (US) was higher than foreseen, but a soft jobs report tempered the Greenback’s advance. At the time of writing, the AUD/USD trades at 0.6738 and bounced off a daily low of 0.6699.

AUD/USD climbs above 0.6700, snapping a five-day losing streak

Wall Street ended Thursday’s session with losses after the US Bureau of Labor Statistics (BLS) revealed that the Consumer Price Index (CPI) increased by 2.4% YoY, exceeding forecasts of 2.3%, though beneath August’s 2.5%. Core CPI ticked a tenth, up from 3.2% in the previous month, and as expected, it was 3.3% YoY.

Other data showed that Initial Jobless Claims for the week ending October 5 were above the consensus of 230K and rose by 258K, up from 225K the previous week.

Federal Reserve officials seemed unaffected by the data and suggested that additional easing is coming – in the names of New York Fed John Williams, Richmond Fed Thomas Barkin, and Austan Goolsbee from the Chicago Fed. Nevertheless, Atlanta’s Fed President Raphael Bostic said he would be open to holding rates unchanged at one of the last two meetings of the year.

On Australia’s front, the docket featured a speech by Reserve Bank of Australia (RBA) Sarah Hunter, though she failed to comment on monetary policy.

Next week, the Australian economic docket will feature a speech by RBA’s Sarah Hunter on Tuesday, October 15. By Wednesday, Australia’s jobs data is expected to give some clues regarding the status of the labor market.

On the US front, Friday’s schedule will feature further Fed speakers, the Producer Price Index (PPI) release, and the University of Michigan (UoM) Consumer Sentiment.

AUD/USD Price Forecast: Technical outlook

From a technical standpoint, the AUD/USD is consolidated yet tilted to the upside. For buyers to resume the uptrend, they must clear the October 9 high at 0.6761 so they could challenge the weekly peak at 0.6809. Conversely, if sellers move in and drag the exchange rate below the 50-day moving average (DMA) at 00.6733, it could pave the way for a drop toward the 100-DMA at 0.6691.