Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Forex

AUD/USD Price Analysis: Corrects from 0.6600 as US Dollar finds temporary support

Source Fxstreet

AUD/USD falls vertically from 0.6600 as the US Dollar gets a firm footing.
Deepening geopolitical tensions have improved safe-haven appeal.
Fed policymakers are less likely to cut interest rates soon.

The AUD/USD pair falls sharply after a steep rally to the round-level resistance of 0.6600 in the early New York session on Thursday. The Aussie asset faces a sell-off as the US Dollar has rebounded amid deepening Middle East tensions.

The Israeli army has intensified bombarding on Rafah, the southern region of Gaza in Palestine, as the former hopes that over 1.4 million refugees have been sheltered there. Escalating Middle East tensions have improved the appeal for safe-haven assets.

Meanwhile, the Federal Open Market Committee (FOMC) minutes for January’s policy meeting indicated that policymakers don’t want to cut interest rates early amid lack of conviction on the progress in inflation declining to the 2% target.

The Australian Dollar remains bullish lately as the Reserve Bank of Australia (RBA) minutes for February policy meeting indicated that policymakers were interested in raising the Official Cash Rate (OCR) further. It indicates that the current monetary policy of the RBA is not sufficiently restrictive to tame sticky price pressures.

Going forward, investors will focus on the United States preliminary S&P Global PMI data for February, which will be published at 14:45 GMT.

AUD/USD strengthens after a breakout of the Falling Pennant chart pattern formed on a four-hour scale. A breakout of the aforementioned pattern indicates a bullish reversal. The breakout of a Falling Pennant happens when selling pressure dries, and investors consider it a value-buy.

The 20-period Exponential Moving Average (EMA) near 0.6550 continues to provide support to the Australian Dollar bulls.

The 14-period Relative Strength Index (RSI) struggles to sustain in the 60.00-80.00 region. A bullish momentum would trigger if the RSI (14) manages to do so.

Fresh upside would appear if the asset breaks above the round-level resistance of 0.6600, which will drive the asset towards January 30 high at 0.6625, followed by December 4 high at 0.6688.

In an alternate scenario, a downside move below February 15 low at 0.6477 would activate sellers and will expose the asset to February 13 low at 0.6443 and the round-level support of 0.6400.

AUD/USD four-hour chart

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Dollar holds above 100 near a 3-month high — three Fed speakers and a $69 billion auction land tonight The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

Author Suzie

Sep 22, Tue

The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changed Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

Author Irene Q.

Sep 23, Wed

Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

Memory chips surge, Nasdaq notches a second straight record close — why the Dow fell 185 points anyway Micron gained 5%, SanDisk 6.8%, Seagate 4% and Western Digital 3% as the memory complex led the Nasdaq Composite to a second consecutive record close of 27,244.28. But the Dow fell 185 points as JPMorgan, Wells Fargo and Schwab slid more than 3% each — a split tape that says more about positioning than about the economy.

Author Irene Q.

Sep 23, Wed

Micron gained 5%, SanDisk 6.8%, Seagate 4% and Western Digital 3% as the memory complex led the Nasdaq Composite to a second consecutive record close of 27,244.28. But the Dow fell 185 points as JPMorgan, Wells Fargo and Schwab slid more than 3% each — a split tape that says more about positioning than about the economy.

Gold Price Forecast: XAU/USD drifts toward $4.300 with bears gaining traction Gold (XAU/USD) retraces Tuesday’s gains on Wednesday and drifts lower, approaching the $4,300 area as the US Dollar Index (DXY) rallies further amid high US Treasury yields.

Author FXStreet

Sep 23, Wed

Gold (XAU/USD) retraces Tuesday’s gains on Wednesday and drifts lower, approaching the $4,300 area as the US Dollar Index (DXY) rallies further amid high US Treasury yields.

US input costs rose at the fastest pace in four years — the September flash PMI beat is an inflation story, not a growth story US September flash PMIs came in far above expectations, with the composite at 58.4, a five-year high. But the detail that moved markets was input cost inflation at its fastest since October 2022, driven by fuel, transport and supply shortages. Brent is back above $100 and the 10-year Treasury yield has hit its highest since 2007.

Author Suzie

19 hours ago

US September flash PMIs came in far above expectations, with the composite at 58.4, a five-year high. But the detail that moved markets was input cost inflation at its fastest since October 2022, driven by fuel, transport and supply shortages. Brent is back above $100 and the 10-year Treasury yield has hit its highest since 2007.

Related Instrument