AUD/USD tumbles toward 0.6600 after FOMC’ s minutes ahead of Aussie PMIs

Source Fxstreet
May 22, 2024 22:34
  • AUD/USD tumbled more than 0.60% on Wednesday due to FOMC turning hawkish.
  • Fed minutes hint at possible rate hikes if inflation risks increase, boosting US Treasury yields and the Dollar.
  • Australian economic agenda includes Judo Bank Manufacturing and Services PMIs, showing mixed preliminary results for May.
  • Upcoming US data: unemployment claims and S&P Global PMIs could influence AUD/USD.

The Australian Dollar registered losses against the US Dollar of 0.69% after the Federal Reserve hinted at raising rates if inflation warranted it, according to the latest meeting minutes. Therefore, US Treasury yields edged up, while the Greenback rose more than 0.20%, as depicted by the US Dollar Index (DXY). As Thursday’s Asian session begins, the AUD/USD trades at 0.6618, down 0.03%.

AUD/USD falls as Fed minutes suggest potential rate hikes, Australian PMI eyed

US equities finished Wednesday mixed ahead of NVIDIA’s earnings release. Global bond yields rose after inflation in the UK dipped, but it was above estimates, diminishing the odds of the Bank of England lowering rates.

Across the pond, the latest FOMC minutes revealed, "Various participants mentioned willingness to tighten policy further should risks to outlook materialize and make such action appropriate.”

The FOMC Minutes revealed that Fed officials remain uncertain about the current degree of policy restrictiveness. They noted that "it would take longer than previously anticipated to gain greater confidence in inflation moving sustainably to 2%."

On the Aussie’s front, Thursday’s economic docket will feature the release of the Judo Bank Manufacturing and Services PMIs final readings for May. The preliminary reading showed that manufacturing activity remained in contractionary territory yet improved from 47.3 to 49.6, while the services index remained in expansionary territory, still dipping from 54.4 to 53.6.

On the US front, unemployment claims for the week ending May 18, alongside the release of the S&P Global PMIs, could spark some movement in the AUD/USD pair.

AUD/USD Price Analysis: Technical outlook

After trading within a narrow range of 0.6640-0.6700, the AUD/USD cleared the bottom of the range and extended its losses toward the 0.6610 region. It should be said that buyers are losing steam, as the Relative Strength Index (RSI) turned flat despite being in bullish territory, opening the door to testing lower price levels.

The AUD/USD first support would be 0.6600. A breach of the latter will expose the 100-day moving average (DMA) at 0.6562, followed by the 50 and 200-DMAs each at 0.6553 and 0.6526. Conversely, if buyers regain control, and push prices above 0.6640, that could pave the way toward 0.6700.

AUD/USD

Overview
Today last price 0.662
Today Daily Change -0.0045
Today Daily Change % -0.68
Today daily open 0.6665
 
Trends
Daily SMA20 0.6597
Daily SMA50 0.6553
Daily SMA100 0.6565
Daily SMA200 0.6527
 
Levels
Previous Daily High 0.6679
Previous Daily Low 0.6646
Previous Weekly High 0.6714
Previous Weekly Low 0.658
Previous Monthly High 0.6644
Previous Monthly Low 0.6362
Daily Fibonacci 38.2% 0.6659
Daily Fibonacci 61.8% 0.6667
Daily Pivot Point S1 0.6648
Daily Pivot Point S2 0.6631
Daily Pivot Point S3 0.6616
Daily Pivot Point R1 0.6681
Daily Pivot Point R2 0.6696
Daily Pivot Point R3 0.6713

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
EURUSD Long-term Forecast: Can ECB Hawks Overcome the Dollar Bullishness? As one of the most traded currency pair in the forex markets, the price of EURUSD affects many traders. Check out our EURUSD long-term forecast for more information.
Author  Mitrade
As one of the most traded currency pair in the forex markets, the price of EURUSD affects many traders. Check out our EURUSD long-term forecast for more information.
placeholder
Copper Long-term forecast: Will Copper Price Expected To Soar In 2023?The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
Author  Mitrade
The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
placeholder
Understanding the first crypto market crash of 2024 and what to expect nextThe 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
Author  FXStreet
The 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
placeholder
Natural Gas faces upside pressure as European traders prepare for next heating seasonNatural Gas (XNG/USD) prices are holding ground above $2.00 on Friday after a brief dip earlier this week. Gas prices are quickly recovering as mainland Europe is gearing up for the next heating season, with traders starting to negotiate contracts in
Author  FXStreet
Natural Gas (XNG/USD) prices are holding ground above $2.00 on Friday after a brief dip earlier this week. Gas prices are quickly recovering as mainland Europe is gearing up for the next heating season, with traders starting to negotiate contracts in
placeholder
Japan's Kanda declines to comment on Yellen FX intervention remarksJapan's top currency diplomat, Masato Kanda, who will instruct the BoJ to intervene, when he judges it necessary, said on Tuesday that the Japanese government may take the necessary steps to deal with excessive market volatility, but declined to comment on US Treasury Secretary Janet Yellen's views on currency policy, per Reuters.
Author  FXStreet
Japan's top currency diplomat, Masato Kanda, who will instruct the BoJ to intervene, when he judges it necessary, said on Tuesday that the Japanese government may take the necessary steps to deal with excessive market volatility, but declined to comment on US Treasury Secretary Janet Yellen's views on currency policy, per Reuters.
goTop
quote