Jakarta, GIC Trade – The Australian dollar fell from an intraday peak but remained on track for further gains earlier in the day which hit an 11-week high amid upbeat inflation from Australia following China's mixed data published on Thursday morning.
 
Meanwhile, Australian Consumer Inflation expectations rose to 5.0% in May, compared with 4.6% previously. China's CPI improved due to a decline in MoM YoY, PPI fell in April.
 
China's headline Consumer Price Index (CPI) fell to 0.1% YoY from 0.7% previously, compared with a forecast of 0.3%, while the Producer Price Index (PPI) fell to -3.6% YoY compared to the market consensus of -3.2% and the previous reading of -2.5%.
 
Earlier in the day, Australian Consumer Inflation Expectations for May rose to 5.0% from 4.6% previously.
However, weaker US inflation and hawkish statements in the Reserve Bank of Australia (RBA) document released on Freedom of Information (FOI) demand kept buyers of the Aussie pair hopeful.
 
It is worth noting that RBA documents show that the Australian central bank's path with a cash rate of 4.8% shows inflation on target by the end of 2024.
 
In addition, expectations of a US-China policymakers' meeting and Australia's readiness to have close ties with China also supported slightly positive sentiment and supported the rise of the risk barometer pair, the Aussie. 
 
On the other hand, the Reserve Bank of Australia unexpectedly raised interest rates by 25 basis points to 3.85% at its May policy meeting and said that further tightening may be necessary to ensure inflation returns to target within a reasonable timeframe. 
 
The annual inflation rate in Australia was at 7% in the three months to March, slowing from a 30-year high of 7.8% in the previous quarter, but remaining well above the United States' 4.9% level in April.
 
Fundamentally, upbeat inflation from Australia following China's mixed data published on Thursday morning as well as expectations of a US-China policymakers' meeting and Australia's readiness to have a close relationship with China also supported slightly positive sentiment and supported a rise in the risk barometer pair of the Aussie. Then how technically, see the following analysis:
 
Technical Analysis

 
The AUD/USD pair in the 1-hour period tried to move down, touching the support level at 0.67650 until heading towards the next support level at 0.67010. The downward trend can also be seen from the FXBot template, where the AUD figure is lower by 3.2 than the USD figure of 7.4. While the bearish trend is also supported by sell signals indicated by red arrows. This Forex analysis is a fundamental and technical view used by the author, not a suggestion or a solicitation.