
AUD/USD Shorts Bear the Brunt of Hot CPI, Renewed RBA Hike Bets
Hot Australian CPI revives RBA hike bets, lifts bond yields and adds fresh pressure to crowded AUD/USD short positions.
Expertise: FX Macro, Technical Analysis, Sentiment
Trading Style: Mean reversion/inflection points, the occasional trend
Experience:

Hot Australian CPI revives RBA hike bets, lifts bond yields and adds fresh pressure to crowded AUD/USD short positions.

Australian consumer sentiment rebounds sharply, but softer RBA hike expectations and resistance near 0.7140 could test AUD/USD bulls.

USD/JPY is attempting to stabilise after its sharpest 2-day decline in 4 years, but Fed-backed support for Japan could keep rallies on a short leash.

Euro and yen bears were caught offside after the FOMC and coordinated US-Japan intervention, while US dollar positioning reached an 11-year extreme.

The US dollar eyes 102 as soaring crude oil prices, geopolitical tensions and hawkish Fed bets combine to strengthen the bullish case.

AUD/USD snapped a four-week losing streak, but the bounce lacks conviction as traders eye ISM services, FOMC minutes and resistance near 0.7000.

Gold weakens despite geopolitical risks as crude oil volatility surges on Middle East tensions. Traders watch $5,000 support on gold and $100 for Brent.

Australian CPI remains above target, but easing yield expectations and a pre-CPI AUD rally leave markets unconvinced a February RBA hike is locked in.

AUD/USD shows signs of exhaustion near recent highs as traders weigh tariff risk, fading RBA hike odds and Fed policy divergence.
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