AUD/USD Consolidates Near Three-Year Highs Ahead of Crucial Australian CPI Data

The AUD/USD pair is currently consolidating just below its three-year highs as market participants await the release of the monthly Australian Consumer Price Index (CPI) report. This inflation data is expected to be a decisive factor for the Reserve Bank of Australia (RBA), which recently raised rates to 3.85% while signaling potential further tightening. Concurrently, the US Dollar has faced headwinds following a Supreme Court ruling regarding reciprocal tariffs linked to Donald Trump's trade agenda. Federal Reserve Governor Christopher Waller has also emphasized the importance of next week's Non-Farm Payrolls (NFP) report for the US monetary path. The Australian Dollar needs robust CPI figures to maintain its bullish momentum and break through significant technical resistance levels. Investors remain focused on these high-impact catalysts to gauge the policy divergence between the RBA and the Federal Reserve.