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
AUD/USD consolidates near 19-month peak as traders await US PCE Price Index
AUD/USD oscillates in a range below the 0.6900 mark, as traders opt to move to the sidelines ahead of the US PCE Price Index. In the meantime, the RBA's hawkish stance, the optimism led by additional monetary stimulus from China, the prevalent risk-on mood, and a bearish USD continue to act as a tailwind for the pair.
USD/JPY holds above 145.00 after the Tokyo CPI inflation data
The USD/JPY pair attracts some buyers to near 145.20 on Friday during the early Asian session. The pair gains ground near three-week highs after the Tokyo Consumer Price Index. The attention will shift to the US Personal Consumption Expenditures Price Index for August, which is due later on Friday.
Gold price holds steady near record peak; looks to US PCE data from fresh impetus
Gold price consolidates below the all-time high set on Thursday amid overbought conditions on the daily chart and the risk-on mood, though dovish Fed expectations continue to act as a tailwind. Bulls, meanwhile, prefer to wait for the release of the US PCE Price Index before placing fresh bets.
Ethereum investors show bullish bias amid ETF inflows and positive funding rates, exchange reserves pose risk
Ethereum traded around $2,640 on Thursday, up more than 2% following increased bullish bias among investors, as evidenced by ETH ETF net inflows and an uptrend in funding rates. However, investors may be wary of a potential correction from ETH's rising exchange reserve.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.