AUD/USD Current Price: 0.6573
- The US Dollar weakens modestly on a quiet Monday.
- The Aussie rises marginally against the US Dollar but fails to regain key levels.
- Market participants are awaiting key US inflation data scheduled for later in the week.
- On a quiet day, the AUD/USD rose modestly due to a weaker US Dollar, but it remains below 0.6600 and continues to exhibit a bearish bias. After a three-day recovery, the pair has been unable to recover significantly and continues to move with a downside risk. Market focus is now on the release of US Consumer Price Index (CPI) data on Thursday and comments from central bankers.
Australia's markets were closed on Monday due to a bank holiday. The ANZ Jobs Advertisement data showed that job ads rose by 0.4% in July, following a revised decline of 2.7% in June (previously reported as -2.5%). The ANZ indicator continues to retreat from the highs it reached in September 2022 but remains well above the historical average.
On Tuesday, the Australian Westpac Consumer Confidence for August is scheduled to be released, along with the National Australia Bank's Business survey, which are expected to show a decline in July compared to June's figures. Additionally, China will release trade data, with Chinese exports expected to show a decline of 12.5% from a year ago, and imports projected to have contracted by 5%.
The US Dollar experienced a modest pullback against the Aussie on Monday, and the US Dollar Index finished flat, hovering around 102.00. US Treasury bonds had a mixed performance. The divergence in economic performance and expectations between the US and other economies continues to support the Greenback from a fundamental perspective. The upcoming release of US inflation figures on Thursday will be critical in shaping market sentiment for the current week.
AUD/USD short-term technical outlook
-638270331283717535.png)
The AUD/USD rose modestly on Monday and continued its upward trend for the third consecutive day. However, it finished far from its highest point and has not been able to recover last Wednesday's losses. The bias remains tilted towards the downside. The stabilization above 0.6535 is providing some positive signs, with technical indicators flattening on the daily chart, but the Australian Dollar is still not showing significant strength.
On the 4-hour chart, the outlook for the Aussie has improved as the price rose above the 20-Simple Moving Average (SMA). The pair could potentially rise further, with the next strong resistance level around 0.6600, followed by 0.6620. A consolidation above 0.6600 could further enhance the outlook for the Aussie. However, overall, the current recovery is viewed as a correction of the AUD/USD slide, rather than a stronger trend. A decline below 0.6560 (horizontal and 20-SMA) would clear the path for bearish pressure, exposing the next support level at 0.6540. If the price drops below; the 0.6500 would be exposed.
Support levels: 0.6560 0.6540 0.6495
Resistance levels: 0.6585 0.6620 0.6675
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD falls to fresh daily lows below 1.0400 after upbeat US data
EUR/USD came under selling pressure early in the American session following the release of United States macroeconomic figures. The December ISM Services PMI unexpectedly surged to 54.1, while November JOLTS Job Openings rose to 8.1 million, also bearing expectations.
GBP/USD extends retracement, struggles to retain 1.2500
GBP/USD lost further traction and battles to retain the 1.2500 mark after hitting an intraday high of 1.2575. Stock markets turned south after the release of upbeat American data, providing fresh legs to the US Dollar rally.
Gold holds on to modest gains amid a souring mood
Spot Gold lost its bullish traction and retreated toward the $2,650 area following the release of encouraging US macroeconomic figures. Jumping US Treasury yields further support the US Dollar in the near term.
Bitcoin Price Forecast: BTC holds above $100K following Fed’s Michael Barr resign
Bitcoin edges slightly down to around $101,300 on Tuesday after rallying almost 4% the previous day. The announcement of Michael S. Barr’s resignation as Federal Reserve Vice Chair for Supervision on Monday has pushed BTC above the $100K mark.
Five fundamentals for the week: Nonfarm Payrolls to keep traders on edge in first full week of 2025 Premium
Did the US economy enjoy a strong finish to 2024? That is the question in the first full week of trading in 2025. The all-important NFP stand out, but a look at the Federal Reserve and the Chinese economy is also of interest.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.