• The AUD/USD price analysis shows a slight improvement in risk appetite.
• The US president said he was willing to continue talks with the EU.
• Market participants are expecting an acceleration in US price pressures.

The AUD/USD price analysis shows a slight improvement in risk appetite after Trump showed a willingness to continue trade negotiations. However, the downside potential remains amid renewed global trade tensions. Meanwhile, market participants are eagerly awaiting the crucial US consumer inflation report.

Trump recently rekindled trade worries after announcing higher tariffs on several US trading partners. The most recent was a 30% tariff on imports from the Eurozone and Mexico. This caused a decline in risk appetite that hurt the Australian dollar. However, the impact was muted. 

Moreover, sentiment improved after the US president said he was willing to continue talks with the EU, hoping for a trade deal before the August 1 deadline. However, the risk-sensitive Australian dollar will remain vulnerable as the new tariff deadline looms. Additionally, the risk of a global trade war will continue rising.

Elsewhere, Trump continued his attacks on Powell on Monday, calling for him to resign. The constant attacks have caused worries about the independence of the US central bank, hurting the dollar. 

Meanwhile, market participants are expecting an acceleration in US price pressures. The upcoming CPI report will shape the outlook for future Fed policy moves.
 

AUD/USD key events today

• US core CPI m/m
• US CPI m/m
• US CPI y/y
   

AUD/USD technical price analysis: Bulls aim for the range resistance

(Click on image to enlarge)

AUD/USD 4-hour chart

On the technical side, the AUD/USD price is trading in a sideways move between the 0.6500 support and the 0.6590 resistance. The price has been chopping through the 30-SMA while the RSI has traded in bullish and bearish territory, indicating a range. 

However, on a smaller scale, bulls are in the lead. The price trades above the 30-SMA, and the RSI is above 50. After retesting the range resistance, the price pulled back to the 30-SMA support. It punctured the line but failed to move lower. As a result, bulls have returned to push the price above the SMA. 

Given the bullish bias, AUD/USD might soon retest the 0.6590 range resistance. If it holds firm, the price will bounce lower and likely continue consolidating. On the other hand, a break above the resistance would solidify the bullish bias.

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