AUD/USD Current Price: 0.6673
- RBA Governor Lowe will deliver a speech on Wednesday.
- The US Dollar continues to be the key driver, with US CPI data on Wednesday expected to be crucial.
- The AUD/USD continues to move sideways within the range of 0.6600 and 0.6700.
The AUD/USD approached the 0.6700 area during the Asian session but then pulled back, holding in the familiar range as the market remains choppy, awaiting US inflation data. Those numbers will likely trigger volatility and an increase in volume. Prior to that release, the current consolidation path could continue. Higher equity prices continue to offer support to the Aussie.
Data released on Tuesday showed the National Australia Bank Business Condition Index rose modestly in June from 8 to 9, while the Confidence Index recovered from -4 to 0. The index is above the average, showing resilience among businesses. The Westpac-Melbourne Institute Consumer Sentiment rose by 2.7% to 81.3 in July. The report mentioned that "sentiment remains at the deeply pessimistic levels that have prevailed for just over a year now" and added that "a significant reported fall in inflation looks to have boosted confidence".
On Wednesday, Reserve Bank of Australia Governor Lowe will deliver a speech on "The Reserve Bank Review and Monetary Policy". At the July meeting, the RBA kept interest rates unchanged at 4.1%. Comments from Lowe will be watched closely. The next RBA meeting is on August 1, and the June CPI will be released on July 27. Also of relevance for the Aussie on Wednesday will be the Reserve Bank of New Zealand's decision. No change is expected from the RBNZ.
The key driver in AUD/USD will likely continue to be the US Dollar, particularly ahead of a crucial report. The US Consumer Price Index (CPI) will be released on Wednesday, with a 0.3% monthly increase expected in June. Those figures will be critical for monetary policy expectations ahead of the July 25-26 FOMC meeting. Market participants appear to be on the sidelines, waiting for those figures before making any significant trading decisions.
AUD/USD short-term technical outlook
Not much has changed for the AUD/USD over the last few sessions. The pair continues to move below the 20- and 200-day Simple Moving Averages (SMA), at 0.6717 and 0.6695, respectively. The key resistance is the 0.6700 zone, and consolidation above 0.6720 would open the door to further gains, probably to the 0.6800 zone. On the flip side, the relevant support stands at 0.6590, and a break lower would leave the Aussie vulnerable to further losses, with the next support at 0.6560 (March low).
On the 4-hour chart, AUD/USD is moving sideways, without clear signs around 0.6670 and near the 20-SMA. The Relative Strength Index (RSI) is flat at 50, while momentum is accelerating on the upside. The risk appears tilted to the upside in the short term ahead of the Asian session. As it approaches 0.6700, resistance is likely to strengthen, and a break above should trigger a bullish acceleration. On the flip side, below 0.6650, the pair could weaken modestly, exposing a trendline around 0.6630, which should limit the downside. Below that level, a slide to 0.6600 seems likely.
Support levels: 0.6630 0.6595 0.6560
Resistance levels: 0.6695 0.6720 0.6755
View Live Chart for the AUD/USD
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 holds steady above 1.0800, looks to post weekly losses
EUR/USD trades marginally higher on the day above 1.0800 after the data from the US showed that Durable Goods Orders declined by 0.8% in September. Nevertheless, the pair remains on track to close the fourth consecutive week in negative territory.
GBP/USD extends recovery to 1.3000 area
GBP/USD extends its recovery and trades at around 1.3000 in the American session on Friday. The US Dollar struggles to gather strength as the market mood remains positive heading into the weekend, allowing the pair to hold its ground.
Gold fluctuates in narrow range below $2,750
Gold stays in a consolidation phase and fluctuates in a relatively tight range below $2,750 on Friday. US Treasury bond yields stabilize in the American session, making it difficult for XAU/USD to gather directional momentum.
Crypto Today: XRP, Bitcoin and Ethereum decline as Ripple files response to SEC appeal
XRP loses over 1.30% as Ripple's executive confirms the filing of an important document in the appeals process in the SEC lawsuit. Bitcoin corrects less than 1% and sustains above $67,500. Ethereum is down nearly 0.20%, holding above the key support level of $2,500.
US elections: The race to the White House tightens
Trump closes in on Harris’s lead in the polls. Neck and neck race spurs market jitters. Outcome still hinges on battleground states.
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.