- AUD/USD faces selling pressure above 0.6400 as IMF warned decline in global output due to Middle East tensions.
- The USD Index drifted lower swiftly to near 106.00 as Fed policymakers supported keeping interest rates steady.
- AUD/USD trades in a Rising channel in which each pullback is considered as a buying opportunity.
The AUD/USD pair remained offered above the round-level resistance of 0.6400 in the early New York session. The Aussie asset struggles to extend recovery as the International Monetary Fund (IMF) warned that rising oil prices due to deepening Middle East tensions could dampen global Gross Domestic Product (GDP) and rebound inflation.
The expectations of one more interest rate increase from the Reserve Bank of Australia (RBA) have increased due to rising inflation expectations, supported by higher oil prices.
Meanwhile, the US Dollar Index (DXY) drifted lower swiftly to near 106.00 as Federal Reserve (Fed) policymakers supported keeping interest rates steady at 5.25-5.50% in the November monetary policy meeting.
Going forward, investors will focus on the US inflation data, which will be published on Thursday. The monthly headline and core inflation are seen growing by 0.3% in September.
AUD/USD trades in a Rising channel chart pattern on an hourly scale in which each pullback is considered as a buying opportunity by the market participants. The 50-period Exponential Moving Average (EMA) at 0.6388 is considered as a buying opportunity by the market participants.
The Relative Strength Index (RSI) (14) skids into the 40.00-60.00 range, which indicates a consolidation ahead.
A fresh downside would appear if the Aussie asset dropped below October 03 low around 0.6286. This would expose the asset to 21 October 2022 low at 0.6212, followed by 13 October 2022 low at 0.6170.
In an alternate scenario, 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.
AUD/USD four-hour chart
-638325422864688000.png)
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
Gold hovers around all-time highs near $3,250
Gold is holding steady near the $3,250 mark, fuelled by robust safe-haven demand, trade war concerns, and a softer-than-expected US inflation gauge. The US Dollar keeps trading with heavy losses around three-year lows.
EUR/USD retreats towards 1.1300 as Wall Street shrugs off trade war headlines
The EUR/USD pair retreated further from its recent multi-month peak at 1.1473 and trades around the 1.1300 mark. Wall Street manages to advance ahead of the weekly close, despite escalating tensions between Washington and Beijing and mounting fears of a US recession. Profit-taking ahead of the close also weighs on the pair.
GBP/USD trims gains, recedes to the 1.3050 zone
GBP/USD now gives away part of the earlier advance to fresh highs near 1.3150. Meanwhile, the US Dollar remains offered amid escalating China-US trade tensions, recession fears in the US, and softer-than-expected US Producer Price data.
Bitcoin, Ethereum, Dogecoin and Cardano stabilze – Why crypto is in limbo
Bitcoin, Ethereum, Dogecoin and Cardano stabilize on Friday as crypto market capitalization steadies around $2.69 trillion. Crypto traders are recovering from the swing in token prices and the Monday bloodbath.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.