Snapshot: AUD/USD trades at 0.7167 (-0.09%) as traders await Australian CPI data due at 11:30 AEST. The RBA remains cautious, reluctant to commit to a cut path, making today’s inflation print a key catalyst. Positioning is crowded long, creating squeeze risk.
- Aussie bulls will need to see CPI data print at or below expectations to avoid a potential washout of crowded longs.
- Watch DXY performance; further gains could pressure AUD/USD, negating any positive domestic surprise.
Bias into NY: Cautiously bearish; a hot CPI print at 11:30 AEST could send AUD/USD towards 0.7130, given the current crowded positioning.