The Australian and New Zealand dollars traded in a narrow range awaiting the release of US inflation data

(1) The Australian dollar and the New Zealand dollar had a good time on Tuesday, waiting for the latest US inflation data. (2) AUD/USD hovered at $0.6601 and rebounded between $0.6586 and $0.6629 overnight. The main resistance level is at $0.6650 and the support level is at $0.6558. (3) NZDUSD found supporting near $0.6010 and rose to 0.6022. The main technical levels are in the $0.6040/50 zone and $0.5982. (4) Australia's Labor government will unveil its annual budget later on Tuesday and say cost-of-living relief measures will temporarily drop consumer price inflation. (5) Australian Treasurer Chalmers said that the current headline inflation rate of 3.6% may return to the Central Bank's 2%-3% target range by the end of this year, while the Central Bank itself forecasts an inflation rate of 3.8%. (6) If true, this slowdown could open the door for the RBA to cut rates earlier. (7) Rodrigo Catril, senior forex analyst at the National Australia Bank (NAB), said that "this may drop headline inflation, but unless these measures are permanent, the Central Bank of Australia is likely to shy away from them". (8) The market still sees a 15% chance of a next Intrerest Rate hike and believes that easing is almost impossible this year