The AUDUSD has been under pressure at 0.6660 as a result of mixed Australian Wage Price Index data.
The AUDUSD pair has been under pressure at 0.6660 following the release of mixed Q1 Wage Price Index data from the Australian Bureau of Statistics.
The quarterly labor cost index fell short of expectations, although yearly data beat expectations.
The quarterly labor cost index has stayed stable at 0.8%, slightly lower than the 0.9% forecast. Annual growth has surged to 3.7%, compared to the consensus of 3.6% and the previous announcement of 3.3%. This may allow the Reserve Bank of Australia (RBA) to maintain interest rates at 3.85%.
The permission to raise the US borrowing cap has been pushed out until the end of the week.
Earlier, despite the permission for lifting the US borrowing ceiling being postponed until the end of the week. The Australian currency stayed sideways.
However, one thing is certain: the default is no longer an option, as each delegate regards it as a disaster.
Meanwhile, the United States After failing to continue its rebound above 102.70, the Dollar Index (DXY) is exhibiting symptoms of volatility contraction.
AUDUSD Technical Outlook
A look at the Aussie four-hour scale shows that the upside is limited by the April 14 high around 0.6806, while the downside is limited by the March 07 low around 0.6580. Intermediate support is drawn from the low on May 03, near 0.6640. At 0.6700, the 200-period Exponential Moving Average (EMA) indicates a sideways trend.
In the meanwhile, the Relative Strength Index (RSI) (14) has risen from 40.00, suggesting a weak negative bias.
Acceptance over the round-level resistance at 0.6800 will undoubtedly propel the Australian Dollar higher towards the February 06 low at 0.6855 and the February 21 peak at 0.6920.
In another scenario, bulls of the US dollar will stretch their muscles. If the Australian currency falls below the March 15 low of 0.6590. If this occurs, the asset will be exposed to the March 08 low of 0.6568, followed by the 02 November 2022 high of about 0.6500.
