Australian dollar is weakening while the US dollar gains its recent losses.
On Monday, the Australian Dollar (AUD) continue to decline for the fourth day in a row. The US dollar (USD) is rising due to positive US Treasury yields, which presents difficulties for the AUDUSD pair.
It is anticipated that Australia’s central bank would raise interest rates further.
It is expected that Australia’s central bank will impose stricter monetary measures. According to Governor of the Reserve Bank of Australia (RBA) Michele Bullock, the RBA is prepared to implement appropriate policy measures should inflation continue to exceed expectations.
Australia is witnessing some intriguing changes in the employment landscape. September has seen the Employment The equation took an unexpected turn when change suddenly declined sharply. Positively, the Unemployment Rate deviated from the projected trend and dropped more than expected, which was a good move.
Positive US Treasury yields help to maintain the value of the dollar.
The US Dollar Index (DXY) recovers its recent losses, maybe helped by positive economic data coming out of the US. But Friday’s decline in US Treasury yields presented challenges for the US Dollar (USD).
Chairman of the Federal Reserve (Fed), Jerome Powell, stated on Thursday that the bank will not be raising rates in the near future, supporting the pair. Powell went on to say that further tightening of monetary policy would be necessary if there are any more indications of growth or if the labor market stops.
Australian Dollar Technical Outlook
The Australian dollar continues to trade above the important level of 0.6300.
On Monday, the Australian dollar fell, trading near 0.6310, in line with significant support at 0.6300.
The monthly low at 0.6285 indicates the next support level. Looking higher, a significant resistance is found at 0.6347, the 14-day Exponential Moving Average (EMA), which comes after a significant level at 0.6400.
A break over this level might take the market to about the 0.6429, or 23.6%, Fibonacci retracement level.
