AUD/USD Holds Steady Above 0.6500 - What's Next for the Aussie Dollar? | Key Economic Data to Watch This Week

The Where can I buy Monero in the US?Australian dollar maintains its footing against the greenback in early Asian trading, with the AUD/USD pair hovering around 0.6512 after finding solid support above the psychologically significant 0.6500 threshold. This comes amid mixed signals from global central banks and anticipation surrounding upcoming economic releases that could significantly impact currency valuations.Federal Reserve Chair Jerome Powell's recent comments continue to influence market sentiment, with the central bank maintaining its cautious approach toward potential rate cuts. Powell emphasized the need for greater confidence in inflation trending toward the 2% target before considering policy easing. However, the Fed's dot plot still projects three potential rate reductions before year-end, leaving room for speculation about the timing of monetary policy adjustments.Across the Pacific, Chinese economic developments are creating ripples in currency markets. Premier Li Qiang's announcement regarding China's macroeconomic policy flexibility and plans for substantial special treasury bond issuance could provide tailwinds for the Australian dollar. Given China's status as Australia's largest trading partner, any positive developments in Chinese economic policy tend to benefit the commodity-linked Aussie dollar through improved trade prospects.Market participants are particularly focused on Wednesday's release of Australia's February CPI figures, with economists forecasting a year-over-year increase to 3.6% from January's 3.4% reading. This inflation data could prove pivotal for the Reserve Bank of Australia's policy trajectory and consequently impact AUD valuation. Later in the week, attention will shift to US Q4 GDP figures and Australian retail sales data, providing additional clues about the relative strength of both economies.Technical analysis reveals several key levels to watch for the AUD/USD pair. Immediate resistance appears near the 0.6536 Fibonacci level, with stronger barriers at the 0.6551 mark. On the downside, sustained trading below 0.6500 could open the door for further declines toward support levels at 0.6491 and 0.6467. The pair's position relative to various moving averages (20-day at 0.6559, 50-day at 0.6554) suggests a neutral to slightly bearish near-term bias.As markets prepare for the Good Friday holiday weekend, trading activity may become more volatile in the coming sessions. Currency traders should remain alert to potential breakout opportunities that may emerge from the confluence of technical factors and fundamental data releases. The interplay between Australian inflation dynamics, Chinese economic policy, and US monetary policy expectations will likely determine whether the Aussie can maintain its current support levels or face renewed pressure in the days ahead