The AUD/USD currency pair has regained upward momentum, approaching the significant 0.6300 resistance zone. This development comes amid increased selling pressure on the Greenback, occurring just before the anticipated release of US inflation data on Wednesday. In a climate of caution impacting financial markets, global stock indices showed resilience despite newly introduced tariffs.
On Monday, global stock markets appeared to dismiss concerns about tariffs as 25% levies on imports of steel and aluminum, including finished products, came into effect late at night. However, this was not without consequence; futures markets began to decline in response to the new levies. Consequently, the S&P 500 and Eurostoxx 50 indices are expected to open lower today, reflecting the cautious tone permeating the financial markets.
Investors are closely watching the upcoming US inflation data, which is set to be released on Wednesday. This data release is crucial as it could influence future monetary policy decisions and market movements. The increased selling pressure on the US dollar ahead of this critical economic indicator signifies traders' anticipation of potential market shifts.
Despite the apprehension surrounding tariffs and US inflation data, the AUD/USD currency pair's recent performance demonstrates its resilience in the face of uncertain economic conditions. The approach towards the 0.6300 resistance zone marks an important technical level that traders are monitoring closely.
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