AUD/USD Current Price: 0.6508
- RBA Governor Lowe will appear before the Senate Economic Committee on Wednesday.
- Australia will release inflation data on Wednesday before the June 6 RBA meeting.
- The AUD/USD pair is moving between 0.6500 and 0.6540.
The AUD/USD pair dropped on Tuesday, erasing two days of gains after being unable to break above 0.6550. It is now back in the 0.6500 area. A stronger US dollar and a deterioration in market sentiment weighed on the pair. Key events ahead will likely decide the next direction.
The Australian economic calendar has several key events scheduled for Wednesday. The first event will be the appearance of Reserve Bank of Australia (RBA) Governor Philip Lowe, testifying before the Senate Economics Legislation Committee in Canberra. He will be asked about the latest interest rate hike, the economic outlook, and what lies ahead. This becomes more relevant, considering that next week will be the monetary policy meeting.
Later on Wednesday, Australia will release the May monthly Consumer Price Index (CPI), expected to show a modest increase from the 6.3% of the previous. These numbers will be critical for monetary policy expectations. However, boosting expectations for a rate hike would be a significant positive surprise. As of now, markets expect a pause in June. Also, on Wednesday, Private Sector Credit data is due.
The US dollar posted mixed results on Tuesday, rising against most emerging market and commodity currencies. A negative market sentiment weighed on these currencies. Key US employment data is due later in the week, which could impact the Greenback. Additionally, the debt ceiling deal announced during the weekend is yet to be passed by the Republican-controlled House and the Democratic Senate in time for the June 5 deadline. This uncertainty could also contribute to the sour market mood.
What Lowe says and the inflation number will likely define the direction of the AUD/USD during the Asian session. However, market sentiment is also playing an important role. A recovery in equity markets could boost the Aussie, while the opposite could make it difficult for AUD/USD to hold above 0.6500.
AUD/USD short-term technical outlook
-638210699033321604.png)
The recovery of the AUD/USD pair has found resistance below 0.6550 and has since pulled back to the 0.6500 area. The pair moves within a range between these levels, with a dominant bearish trend. Risks are tilted to the downside, in line with the primary trend. The next medium-term support is located at 0.6400/10.
On the 4-hour chart, technical indicators offer mixed signals, with Momentum moving to the upside and the Relative Strength Index (RSI) struggling below midlines. The price is below the 20-period Simple Moving Average (SMA). A break above 0.6550 should open the doors to recovery with more conviction. On the contrary, a firm break below 0.6500 could prompt more volatility and a bearish acceleration. The following support stands at 0.6440.
Support levels: 0.6495 0.6445 0.6415
Resistance levels: 0.6550 0.6580 0.6610
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 defends bids above 1.0350 as US Dollar takes a breather
EUR/USD defends minor bids above 1.0350 in the European trading hours on Thursday. The pair finds footing amid a broad US Dollar retreat but the upside remains capped by a softer risk tone. Investors stay cautious at the onset of 2025.
GBP/USD holds gains above 1.2500 amid cautious markets
GBP/USD clings to modest recovery gains above 1.2500 in the European session on Thursday. A mild pullback in the US Dollar and a risk-averse market mood leaves the pair in a narrow range. Traders await the return of full markets before placing fresh bets to begin 2025.
Gold price receives support from a survey suggesting more purchases by central banks
Gold price rises for the third consecutive session on Thursday, following a more than 27% increase in 2024, marking its best performance since 2010. This upward momentum has been driven by US monetary easing, persistent geopolitical tensions, and record central bank purchases.
These three narratives could fuel crypto in 2025, experts say
Crypto market experienced higher adoption and inflow of institutional capital in 2024. Experts predict the trends to look forward to in 2025, as the market matures and the Bitcoin bull run continues.
Three Fundamentals: Year-end flows, Jobless Claims and ISM Manufacturing PMI stand out Premium
Money managers may adjust their portfolios ahead of the year-end. Weekly US Jobless Claims serve as the first meaningful release in 2025. The ISM Manufacturing PMI provides an initial indication ahead of Nonfarm Payrolls.
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.