AUD/USD Price Analysis: Aims to recapture 0.6500 as US Dollar eases


  • AUD/USD climbs sharply above 0.6430 as the US Dollar faces selling pressure ahead of the Fed policy.
  • The Fed is expected to keep interest rates higher long enough to ensure price stability.
  • AUD/USD rebounds after discovering buying interest near the horizontal support plotted around 0.6364.

The AUD/USD pair delivers an upside break of the consolidation formed in a range of 0.6430-0.6450 in the European session. The Aussie asset picks strength as the US Dollar Index (DXY) eases ahead of the Federal Reserve (Fed) monetary policy, which will be announced on Wednesday.

Investors see the Fed keeping interest rates steady at 5.25-5.50% as inflation is consistently cooling while economic prospects are strong. The labor growth in the United States economy has remained steady despite higher interest rates from the Fed. The Fed is expected to keep interest rates higher long enough to ensure price stability.

Meanwhile, the Australian Dollar will remain in action amid the interest rate policy by the People’s Bank of China (PBoC), which will be revealed on Wednesday. A dovish interest rate stance is expected from the PBoC due to upside risks to deflation amid bleak household’ demand.

The US Dollar Index drops sharply below the crucial support of 105.00 and is expected to remain vulnerable ahead.

AUD/USD rebounds after discovering buying interest near the horizontal support plotted from August 17 low around 0.6364 on a two-hour scale. The Aussie asset stabilizes above the 50-day Exponential Moving Average (EMA), which trades around 0.6340. Potential resistance is plotted from August 15 high at 0.6522.

The Relative Strength Index (RSI) (14) jumps above 60.0, which indicates that the bullish impulse has been triggered.

A decisive break above August 15 high around 0.6522 will drive the asset to August 9 high at 0.6571. Breach of the latter will drive the asset towards August 10 high at 0.6616.

On the flip side, a fresh downside would appear if the Aussie asset will drop below August 17 low around 0.6360. This would expose the asset to the round-level support of 0.6300 followed by 03 November 2022 low at 0.6272.

AUD/USD two-hour chart 

AUD/USD

Overview
Today last price 0.647
Today Daily Change 0.0033
Today Daily Change % 0.51
Today daily open 0.6437
 
Trends
Daily SMA20 0.6431
Daily SMA50 0.6552
Daily SMA100 0.6615
Daily SMA200 0.6703
 
Levels
Previous Daily High 0.6449
Previous Daily Low 0.6417
Previous Weekly High 0.6474
Previous Weekly Low 0.6378
Previous Monthly High 0.6724
Previous Monthly Low 0.6364
Daily Fibonacci 38.2% 0.6437
Daily Fibonacci 61.8% 0.6429
Daily Pivot Point S1 0.642
Daily Pivot Point S2 0.6402
Daily Pivot Point S3 0.6387
Daily Pivot Point R1 0.6452
Daily Pivot Point R2 0.6466
Daily Pivot Point R3 0.6484

 

 

 

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