- The AUD/USD pair is struggling to find support as the US dollar advances in the broader market.
- The Australian Dollar faces multiple bearish pressures as the RBA keeps rates unchanged, as markets expected.
- During the rest of the week, key data will be released for both the Australian Dollar and the US Dollar.
The AUD/USD pair is anchored at the 0.6300 level after the Reserve Bank of Australia (RBA) kept its reference rate at 4.1% early on Tuesday. The RBA was generally expected to keep interest rates unchanged at its fourth consecutive meeting as inflation expectations eased, although RBA Governor Michele Bullock signaled that inflation was likely to remain at high side until sometime in 2025.
The RBA maintains the interest rate at 4.10% for the fourth consecutive meeting.
The divergence between the points of view of the different officials of the US Federal Reserve (Fed) leaves expectations about the rate cycle at an intermediate point. Mester and Bostic, both of the Fed, made headlines on Tuesday, leaving investors open-mouthed, as Bostic cooled forward rate expectations, but Mester was notably hawkish.
Fed’s Bostic: There is no urgency for the Fed to do anything else
The rest of the week will be packed with data for both the dollar and the Australian dollar, with the Australian Purchasing Managers’ Index (PMI) due out late on Tuesday, followed by the US Services PMI on Wednesday.
Australian Trade Balance numbers will be released early on Thursday, followed by US job cuts and initial jobless claims, with market participants keeping an eye on Non-Farm Payrolls (N FP ) from the US on Friday.
AUD/USD Technical Outlook
The AUD/USD pair extended its declines on Tuesday, falling to the 0.6300 area and is struggling to find bid support as risk appetite in the markets favors the US Dollar.
The pair is down more than 3% from last week’s swing high, falling more than 210 points in three days of trading after being rejected from the 0.6500 area.
On the intraday chart, the 200 hourly SMA limits the pair’s action and is creating a resistance zone near 0.6400.
In the daily candles, the AUD/USD pair has broken out of its recent consolidation and is extending its downtrend following the rejection of the 34-day EMA.
The pair is now set to challenge the 12-month lows below 0.6200 if the bearish momentum continues.
AUD/USD Daily Chart
AUD/USD technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
