AUD/USD rises on commodity weakness, global inflation cooling signals

AUD/USD declined 0.4% to 0.6520 despite broader commodity price weakness, as copper futures fell 2.1% and Brent oil dropped 1.8% to $71.20 per barrel. The Australian dollar faced pressure from deteriorating commodity demand, traditionally a key driver for the currency. WTI crude oil futures also retreated 1.9% to $67.80, reinforcing the bearish commodity complex. Global inflation indicators showed continued moderation, with market expectations shifting toward more accommodative central bank policies worldwide. The commodity price plunge particularly impacts the Australian economy, given its heavy reliance on raw material exports. Technical indicators suggest AUD/USD may test support at 0.6500, with resistance now established at 0.6550. The cooling inflation narrative could prompt the Reserve Bank of Australia to reconsider its hawkish stance, potentially limiting any near-term recovery in the Aussie dollar against its US counterpart.