Australian dollar remains over 0.6350 after recovering from a 10-month low.
Australian Dollar (AUD) fell to a 10-month low. Despite the announcement of poor Australian Retail Sales statistics. The AUDUSD pair remains stable.
The monthly Consumer Price Index (CPI) in Australia has risen from July’s level. Which might be linked to rising energy prices. This anticipated increase in inflation has fueled speculation. That the Reserve Bank of Australia (RBA) may boost interest rates again. Despite good Consumer Price Index data. The AUD has unable to find traction. The Australian Dollar is under pressure due to heightened risk aversion in the market. The reduction in commodity prices is also a restraining factor for the AUDUSD pair’s upward potential.
The US dollar is continuing to appreciate as a result of increasing US Treasury rates and positive economic statistics.
The US Dollar Index (DXY) is at its highest level since December. Spurred by strong macroeconomic data from the United States (US). The US Dollar (USD) has risen due to the favorable performance of US Treasury rates. In the face of an approaching US government shutdown. The 10-year US Treasury note yield has reached new highs.
The USD’s positive momentum is bolstered further by hawkish statements made by Federal Reserve (Fed) board members. The Minneapolis Federal Reserve President, Neel Kashkari, , lately made statements implying the possibility of further rate rises in the future.
Kashkari also left open the idea of interest rates remaining unchanged if rate reduction are postponed further.
Australian Dollar Technical Outlook:
The Australian dollar is hovering around 0.6350, with a psychological level of 0.6400 acting as a barrier.
During the Asian session on Thursday, the Australian dollar is trading at 0.6360. The AUDUSD pair may encounter a psychological level at 0.6400, followed by the 21-day Exponential Moving Average (EMA) around 0.6422. A strong break above the latter might help the Australian Dollar (AUD) explore the area around the 23.6% Fibonacci retracement around 0.6464. On the downside, the monthly low at 0.6357, which is lined with the psychological level of 0.6350, might be the crucial support level, following the 0.6300.
