AUD/USD trades near 0.6600 with a slight upward bias as markets await the release of critical US economic figures, including Producer Price Index (PPI) and Retail Sales. These data points have the potential to shape inflation expectations and influence the Federal Reserve’s interest rate outlook.

Key Factors:

• US Economic Data: Market focus on PPI (both Core and headline) and Retail Sales figures for inflationary signals and impact on Fed policy.
• Potential USD Impact: Higher-than-expected inflation could strengthen the US Dollar (USD) and pressure AUD/USD.

Technical Outlook:

• Long-term Downtrend: AUD/USD remains within a broader downtrend pattern.
• Trendline Test: Recent rebound from a major trendline suggests potential for further downside in line with the long-term trend.
• Key Levels: A break below 0.6442 (October 2023 low) would solidify the bearish outlook, targeting 0.6170. A break above 0.6871 (December 2023 high) could signal a trend reversal.