Snapshot: AUD/USD trades at 0.7164, down 0.31% on the session. The market is braced for the 11:30 AEST CPI release, which could unlock a May or July RBA rate hike if trimmed-mean inflation prints softly. Copper prices are also exerting downside pressure, trading at 597.50, down 1.76%.
- Aussie bulls will be targeting a break above intraday highs of 0.7195 if the CPI beat expectations.
- Middle East tensions, flagged in the wire news, and OPEC supply uncertainty pose risks as session progresses.
Bias into NY: Downside pressure remains on the AUDUSD pair until the 11:30 AEST CPI data is released. A weaker-than-expected print could see a test of the 0.7150 level, especially with the DXY firming to 98.58 and US 2Y yields climbing to 3.848.