AUD may rise on the The RBA of Australia is projected to raise interest rates. A torrent of dovish statements by US Fed adds to the burden dollar
AUD Key points & Considerations
The Australian dollar is retreating form week peaks prior to the US PPI data release
The RBA is projected to raise rates of interest, bolstering the AUD.
A torrent of dovish statements from the Federal Reserve adds further the strain on the greenback
AUDUSD current trading rate -0.001720 (-0.27%)
The Aussie questioned its recent gain today, following additional signals suggesting the US Fed has pressed the brakes. While the RBA considers the implications of its current interest rate increase phase.
The Middle East scenario keeps causing markets to analyze the risks connected with the possible consequences beyond all asset categories. Furthermore, Westpac consumer optimism figures for Oct show an increase of personal sentiment for a similar time.
Australian Business Sentiment Improved in September
Notwithstanding a slowing in inflation, the Australian average business climate remained resilient in Sept. Furthermore, Consumer optimism improved in Oct with stable prices. Although the general optimism was masked by growing living costs.
On Wednesday, Deputy Governor (Financial Affairs) of the of Australian (RBA), spoke during a Bloomberg event in Sydney. Kent underlined the opportunity to examine the economic system’s reaction to prior interest rate rises. Additionally, there aren’t any plans to increase the pace of bond ownership at this time. In the instance of debt sales, the strategy will be cautious in order to prevent disruptions to the market.
Mr. Kent has observed examples of strong pay rise in specialized industries. While the general effect has been limited. Although admitting the importance of CPI statistics, Kent highlighted that this indicator is not the only element determining policy decisions.
The (DXY) continues to fall, extending declines that started this past week. Amid a small rebound in US treasury rates on the previous day, the USD suffered a struggle.
In addition, an array of dovish-bent statements by US Fed members have reverberated across financial sectors. Resulting in several voicing concern that rising over time yields on US bonds may limit their willingness to hike rates in the future.
Technical Perspective
On Wednesday, the Aussie falls under the 23.6 percent Fibonacci regression value of 0.6429, offering a significant hurdle. A convincing breach over this point might pave the way for more-higher discovery. With the psychological threshold at 0.6450 as the goal. After the 38.2% of the Fibo-retrace of 0.6518, the 50- (DEMA) near 0.6456 appears as a possible barrier.
To the negative side, a critical supporting point at 0.6300 mark has been found. Subsequent to the Nov bottom of 0.6272. These ranges are critical in identifying possible changes in the AUDUSD duo’s direction.
AUDUSD Major Resistance and Support levels
R3 0.6489 R2 0.6461 R1 0.6446 PP 0.6418 S1 0.6404 S2 0.6376 S3 0.6361
Trend – (Sideways)
- Bullish
- Bearish
- Sideways
