AUD/USD Forex Signal Today 10/06: Slow Uptrend (Chart)

(MENAFN- Daily Forex) Bullish view

• Buy the AUD/USD pair and set a take-profit at 0.6625.
• Add a stop-loss at 0.6450.
• Timeline: 1-2 days.

Bearish view

• Sell the AUD/USD pair and set a take-profit at 0.6450.
• Add a stop-loss at 0.6625.

The AUD/USD exchange rate tilted upwards on Tuesday morning as the US Dollar Index (DXY) pulled back ahead of the inflation report. It was trading at 0.6525, a few points above this month's low of 0.6400.

The biggest forex news of the week is the upcoming US inflation data, which will be published on Wednesday. Economists polled by Reuters expect this report to show that US inflation rose slightly as companies adjusted their prices because of Donald Trump's retaliatory tariffs.

The median estimate is that the consumer inflation rose from 2.3% in April to 2.5% in May. Core inflation, which excludes food and energy prices, rose from 2.8% to 2.9% in May.

Many American companies have warned that they will boost prices because of tariffs. Some of the most notable ones were companies like Walmart, Home Depot, Target, and Lowe's. Popular companies like Temu and Shein have already hiked prices.

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A higher inflation figure than expected will likely confirm the Federal Reserve's worst fears that tariffs will cause inflation. It will also put pressure on the bank to maintain rates unchanged for a while.

Trump has called for the bank to slash interest rates by a full point, citing the European Central Bank (ECB) that has slashed rates eight times.

The US inflation data comes a few days after the Bureau of Labor Statistics (BLS) published the latest nonfarm payrolls (NFP) data. These bumbers showed that the labor market softened in May as companies weighed the impact of tariffs.

The AUD/USD pair will also react to the meeting between US and Chinese officials on trade. An agreement on rare earth materials and chips will likely be made public today.

EURUSD Chart by TradingViewAUD/USD technical analysis

The daily chart shows that the AUD/USD pair has been in an uptrend in the past few weeks. It has formed an ascending channel, comprising of several higher highs and higher lows.

The pair has remained above the 50-day and 25-day Exponential Moving Averages (EMA). It has also formed an inverse head and shoulders pattern, a popular reversal sign.

Therefore, the pair will likely remain in this range on Tuesday. A bullish breakout will have it rise to the psychological point at 0.6600. A move below the 25-day EMA at 0.6450 will invalidate the bullish view.

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