starlightprincessmegaways| Risk appetite drives the Australian dollar to rebound and is expected to test a four-month high of 0.6713

Huitong Financial APP News--The Australian dollar expanded its gains against the US dollar for the second consecutive trading day on Monday, despite interest rate cuts on the Federal Reserve.starlightprincessmegawaysExpectations of the Group have weakened, but overall market risk appetite has improved. Meanwhile, investors are eager to announce WednesdaystarlightprincessmegawaysAustralia's April CPI report, hoping to understand the trend of Australia's domestic monetary policy.

Market analyst Akhtar Faruqui said that the Australian dollar may rise as the latest minutes of the Reserve Bank of Australia's meeting showed that the board found it difficult to predict future changes in cash rates, admitting that recent data increased the possibility that inflation will continue to exceed the 2%-3% target for a long time.

The dollar weakened on Friday after the University of Michigan released its five-year consumer inflation forecast for May. Unemployment fell slightly to 3.5 percentstarlightprincessmegaways.0%, lower than expected 3%starlightprincessmegaways.1%。Although the consumer confidence index was revised upward from an initial value of 67.4 to 69.1, it was still the lowest level in six months. The data may help boost investors 'confidence in the possible Fed interest rate cuts.

According to CME's Fed Observation tool, the likelihood of the Fed cutting interest rates by 25 basis points in September has dropped to 44.9%, down from 49.0% a week ago. It is worth noting that U.S. markets will be closed due to the Memorial Day bank holiday on Monday.

The Australian dollar traded around 0.6630 against the US dollar on Monday. The 14th Relative Strength Index (RSI) is at a level just above 50, showing a bullish trend. Analysis of daily charts shows that the Australian dollar is testing the lower boundary of the rising wedge against the US dollar. A return to the wedge shape would indicate a strengthening of the bullish trend. Market analyst Akhtar Faruqui said the nine-day exponential moving average (EMA) at 0.6634, and the lower boundary of the rising wedge, are direct resistance. A break through that level could cause the Australian dollar to test a four-month high of 0.6713 against the U.S. dollar, followed by a rise near the upper limit of 0.6730. In the downward direction, a psychological level of 0.600 can be used as a key support level, followed by 0.6550. Further declines could put downward pressure on the Australian dollar against the US dollar, potentially pushing it towards the pullback support level of 0.6470.

Daily chart of Australian dollar/US dollar At 13:32 Beijing time on May 27, the Australian dollar/US dollar was quoted at 0.6633/34