The Australian dollar shows a slight increase, trying to recover from a fairly active decline the day before. The AUD/USD pair is testing 0.6760 for a breakout; however, market activity remains reduced ahead of the US Federal Reserve meeting, the minutes of which will be published on Wednesday, December 14. Analysts are almost certain that the regulator will decide to raise the interest rate by only 50 basis points after a quadruple increase of 75 basis points.
The key moment before the start of the US Federal Reserve meeting will be inflation data, which is expected to be released today. Current forecasts suggest a decrease in the Consumer Price Index from 7.7% to 7.3% in annual terms and a correction of the index from 0.4% to 0.3% in monthly terms.
In turn, the macroeconomic statistics released today in Australia puts moderate pressure on the instrument. The National Bank of Australia Business Conditions index fell from 22.0 points to 20.0 points in November, and the Business Confidence index fell from 0.0 points to -4.0 points, while analysts expected a steady increase in the indicator to 5.0 points.
The Australian Parliament will consider an initiative to limit domestic energy prices, which will reduce the cost of electricity for residents by more than half. According to Prime Minister Anthony Albanese, the restrictions will be introduced for an annual period and involve fixing the price of gas at 12.0 Australian dollars per 1.0 GJ, and the price for coal may be fixed at 125.0 Australian dollars per 1.0 ton. Officials are also expected to approve social payments to the population most affected by the energy crisis.
In the D1 chart, Bollinger Bands are reversing horizontally. The price range is slightly narrowed from below, remaining spacious enough for the current market activity. MACD is going down preserving a previous sell signal (located below the signal line). Stochastic, on the contrary, retains active growth and is already signaling in favor of the development of the uptrend in the near future.
Resistance levels: 0.6800, 0.6850, 0.6900, 0.6950. | Support levels: 0.6750, 0.6700, 0.6650, 0.6583.