The AUDUSD pair rises for the second day in a row on Wednesday. Marking the third consecutive day of gains in the previous four. And reaches a nearly three-week high during the Asian session. Spot prices, on the other hand, have fallen a few pips in the last hour and are now trading around the 0.6720 level. Still up more than 0.50% on the day.
The US Dollar (USD) is being sold for the fifth day in a row. On speculation that the Federal Reserve (Fed) would raise interest rates. is reaching the conclusion of its current rate-hiking cycle. Which proves to be a significant element acting as a tailwind for the AUDUSD pair. Aside from that, a generally favorable risk tone drives the safe-haven Greenback to a new two-month low. Benefiting the risk sensitive Aussie even more. Bulls, on the other hand, are being cautious and refraining from putting aggressive wagers ahead of the publication of US consumer inflation numbers later in the early North American session.
AUDUSD Technical Outlook
From a technical point. The strong intraday bullish rise over the 200-day Simple Moving Average (SMA) barrier. As well as acceptance above the 0.6700 level, enhances expectations for a further near term appreciating move. Furthermore, oscillators on the daily chart have only just begun to acquire traction.
This, along with hawkish statements by According to RBA Governor Philip Lowe, who stated that some additional tightening would be necessary to restore inflation to goal, the path of least resistance for the AUDUSD pair is to the upside.
Following-through purchasing over the 0.6740-0.6750 range will confirm the view and allow current prices to retake the 0.6800 round figure level. The rising trend might be extended further, causing the AUDUSD pair to challenge the next key barrier between 0.6835-0.6840.
On the other hand, the 0.6700 resistance breakpoint appears to be protecting the immediate downside. Any additional decrease is more likely to draw new buyers and will be restricted to the 0.6655-0.6650 range.
The latter should serve as a key point, and if it is broken. The AUDUSD pair may be forced to test sub-0.6600 levels again. Acceptance below the latter has the potential to drive current prices lower towards the 0.6540 intermediate support and the 0.6460-0.6455 zone, or the YTD low reached on May 31.
