Aussie has lost its yesterday gains and consolidated its downtrend today Asian Session elsewhere the US dollar is trading high against major pairs. The yesterday gains has no obvious basic catalyst, it might be due to the view of making some profit in the midst of a dangerous alarming mood, which could lead to a perceived riskier Aussie. Concerns about a faster-than-expected rise in inflation and sluggish signs of a global economic recovery are raising concerns about the stagnation. Apart from this, fears of concerns from the China Evergrand’s debt crisis continued to weigh on investor sentiment.

Investors are waiting for inflation data from the US and China this weekend, with central banks increasing pressure to tighten monetary policy in anticipation of further readings. A measure of Australian consumer sentiment eased back in early October as worries about the longer-term outlook for the economy overshadowed relief at the imminent loosening of coronavirus restrictions. Disappointed that the survey was taken shortly before the New South Wales lock controls were eased, Victoria and Canberra will soon follow suit.

Westpac chief economist Bill Evans noted that sentiment had improved in Sydney and Melbourne, but those who responded lamented that a resumption of inter-state travel could bring more pandemics to those regions and fell sharply outside those cities. Consumers were also less optimistic about the economy, with the outlook for the next 12 months falling to 1.75 and falling to 5.6% over the next five years. The amount of family finances fell by 1.3% compared to a year ago, while the funds increased by 0.5% over the next 12 months. It added 0.9% to the index of whether it was a good time to buy a major household item, but was down 3.3% from a year ago.

Rising energy prices sparked inflationary concerns and betting that federal policy would have to go faster than normalized by officials, sending two-year treasury yields to an all-time high of more than 18 months overnight. Rising energy prices have sparked inflationary concerns and betting that federal policy should go faster than normalized, with two-year Treasury yields sending overnight highs of more than 18 months. Most central bank policymakers are proving that inflationary pressures are volatile.

Therefore, the market focus will be on Wednesday’s release of US consumer inflation figures. With the minutes of the central bank’s September meeting yet to be released, central officials will include governors Lael Brainard and Michael Bowman to speak after Wednesday. This will play a key role in influencing the USD price dynamics and provide a fresh directional impetus to the AUD/USD pair.

AUD/USD 4 Hour Chart:

 Support: 0.7326 (S1), 0.7303 (S2), 0.7274 (S3).

Resistance: 0.7378 (R1), 0.7407 (R2), 0.7430 (R3).

Amidst this above catalysts the Aussie is on downtrend. We expect a bearish trend for AUD/USD.