The Australian Dollar (AUD/USD) exhibited slight gains, ascending by 0.20% to a trading level of 0.65273 on March 25. Amid an advancing U.S. Dollar, the AUD/USD pair seeks support above the pivotal 0.6500 mark in early Monday trading.

Key Events to Watch:

• Australian CPI and U.S. GDP: Investors await Australia’s CPI data for February and the U.S. GDP figures for Q4, key indicators that may influence the pair’s trajectory.
• Fed’s Rate Cut Indications: Federal Reserve officials hint at potential rate cuts, contingent upon inflation’s return to the 2% target. Fed Chair Jerome Powell’s comments on unemployment and the possibility of rate adjustments before year-end add layers to the interest rate narrative.
• China’s Economic Policies: China’s Premier Li Qiang’s announcement of ultralong treasury bonds and stimulus measures indicates robust support for economic growth, potentially buoying the Australia-centric AUD against the U.S. Dollar.

Anticipated Data Releases:

• Traders are on the lookout for the release of Australian CPI inflation data, anticipated to reflect a rise to 3.6% YoY in February, up from 3.4%. Additionally, Australian Retail Sales for February and U.S. Q4 GDP growth numbers, set for release on Thursday, will provide critical insights.
• These events, occurring ahead of the Good Friday holiday, promise to shape trading dynamics for the AUD/USD pair.

AUD/USD Price Forecast: Technical Outlook

• Pivotal Price Levels: The AUD/USD finds itself navigating around a critical pivot point at 0.6511. Overcoming this level, the pair faces immediate resistance at 0.6564, with further barriers at 0.6597 and 0.6637. Conversely, support is established at 0.6478, reinforcing the floor at 0.6448 and 0.6408.
• Technical Indicators Insight: The Relative Strength Index (RSI) at 42 suggests a slightly bearish sentiment yet hints at potential upward momentum. Meanwhile, the 50-day Exponential Moving Average (EMA) at 0.6558 aligns closely with resistance levels, indicating a pivotal moment for the currency pair.
• Market Sentiment: The formation of a triple bottom pattern around the 0.6512 level, accompanied by a bullish engulfing candle, points towards a strengthening bullish trend should the AUD/USD maintain above the 0.6511 threshold.