- AUDUSD remains lackluster following the footprints of the DXY.
- Bulls are hopeful of a break above the supply zone placed in a 0.6702-0.6751.
- Advancing 20-and 50-EMAs add to the upside filters.
The AUDUSD pair is displaying a lackluster performance in the Asian session despite the release of the Reserve Bank of Australia (RBA) monetary policy minutes to provide detailed reasoning behind hiking interest rates by 25 basis points (bps) in November’s monetary policy meeting.
Also, the US dollar index (DXY) is witnessing back-and-forth moves amid a quiet market mood. The DXY is struggling to surpass the immediate hurdle of 107.00. A minor recovery in the 10-year US Treasury yields to 3.88% has been recorded.
On a four-hour scale, the asset is struggling to cross the demand zone placed in a narrow range of 0.6702-0.6751. The 20-and 50-period Exponential Moving Averages (EMAs) at 0.6642 and 0.6550 respectively are sloping north, which adds to the upside filters.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates more weakness ahead.
Should the asset overstep the above-mentioned demand zone decisively, room for extra gains will get uncovered. The pair will march towards September 2 high at 0.6814, followed by the critical resistance placed from September 13 high around 0.6900.
On the flip side, the greenback bulls will regain strength if the asset drops below Thursday’s low at 0.6387. This will drag the pair towards October 14 high at 0.6324 and November 3 low at 0.6272.
AUDUSD four-hour chart
.
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 appreciates as US Dollar remains subdued after a softer inflation report
The Australian Dollar steadies following two days of gains on Monday as the US Dollar remains subdued following the Personal Consumption Expenditures Price Index data from the United States released on Friday.
USD/JPY consolidates around 156.50 area; bullish bias remains
USD/JPY holds steady around the mid-156.00s at the start of a new week and for now, seems to have stalled a modest pullback from the 158.00 neighborhood, or over a five-month top touched on Friday. Doubts over when the BoJ could hike rates again and a positive risk tone undermine the safe-haven JPY.
Gold downside bias remains intact while below $2,645
Gold price is looking to extend its recovery from monthly lows into a third day on Monday as buyers hold their grip above the $2,600 mark. However, the further upside appears elusive amid a broad US Dollar bounce and a pause in the decline of US Treasury bond yields.
Week ahead: No festive cheer for the markets after hawkish Fed
US and Japanese data in focus as markets wind down for Christmas. Gold and stocks bruised by Fed, but can the US dollar extend its gains? Risk of volatility amid thin trading and Treasury auctions.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
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.