AUD/USD Rallies as Soft Inflation Shifts RBA Bets; US Tech Earnings in Focus

AUD/USD is navigating a dual-driver environment, with softer-than-expected Australian inflation data reshaping Reserve Bank of Australia rate cut expectations while US tech earnings season provides broader risk sentiment support. The latest CPI figures have increased market pricing for an RBA rate cut, which would typically weigh on the Aussie, but strong gains in US equity futures — particularly ahead of major tech earnings reports — are bolstering risk appetite and supporting the currency. The interplay between USD/CNH dynamics and the Aussie remains relevant, as any yuan weakness from ongoing US-China trade tensions could spill over into AUD selling pressure. On the technical front, the pair is finding support from the broader risk-on tone in equity markets, though the shifting RBA outlook creates a ceiling on sustained gains. Traders should watch S&P 500 futures and upcoming tech results closely, as disappointments could reverse the current risk-positive flows that are propping up AUD/USD in the near term.