AUD/USD Forecast: Bulls refuse to give up, but can they win?
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFERAUD/USD Current Price: 0.7020
- The RBA Meeting minutes hinted at more aggressive cash rate hikes in the near future.
- Australia will publish on Wednesday the Q1 Wage Price Index, which is foreseen to be up by 2.5% YoY.
- AUD/USD holds on to gains above 0.7000, and may continue advancing in the near term.
The AUD/USD pair regained the 0.7000 threshold and traded as high as 0.7040 on Tuesday, boosted by the Reserve Bank of Australia and a generalized better market mood. The pair retreated during the American session, and following comments from US Federal Reserve Chair Jerome Powell, as his conviction to take down inflation, weighed on Wall Street, which in turn dragged AUD/USD lower. Nevertheless, the pair trades around the 0.7020 level as equities remain in the green.
The RBA released the Minutes of its latest meeting at the beginning of the day, and the document brought some hawkish surprises. The central bank hinted at larger rate hikes in the foreseeable future after raising the cash rate by 15 bps in May. Members agreed that the preferred option was 25 bps, although an increase of 40 bps could be made given the upside risks to inflation and the current very low level of interest rates. Australia will publish on Wednesday the Q1 Wage Price Index, which is foreseen to be up by 2.5% YoY. The improving figure would support the RBA stance and maintain the aussie afloat.
AUD/USD short-term technical outlook
From a technical point of view, the AUD/USD pair has still quite a road ahead before turning bullish. The daily chart shows that the pair is up for a third consecutive day, although technical indicators are losing their positive momentum within negative levels. Meanwhile, the 20 SMA maintains its firmly bearish slope well above the current level and below the longer ones.
The 4-hour chart shows that the pair stalled its recovery around a mildly bearish 100 SMA but also that the 20 SMA gains upward strength below the current level. Technical indicators have retreated from their intraday highs but stabilized well above their midlines, skewing the risk to the upside, particularly if the pair is able to overcome the intraday high.
Support levels: 0.6995 0.9650 0.6920
Resistance levels: 0.7035 0.7070 0.7110
AUD/USD Current Price: 0.7020
- The RBA Meeting minutes hinted at more aggressive cash rate hikes in the near future.
- Australia will publish on Wednesday the Q1 Wage Price Index, which is foreseen to be up by 2.5% YoY.
- AUD/USD holds on to gains above 0.7000, and may continue advancing in the near term.
The AUD/USD pair regained the 0.7000 threshold and traded as high as 0.7040 on Tuesday, boosted by the Reserve Bank of Australia and a generalized better market mood. The pair retreated during the American session, and following comments from US Federal Reserve Chair Jerome Powell, as his conviction to take down inflation, weighed on Wall Street, which in turn dragged AUD/USD lower. Nevertheless, the pair trades around the 0.7020 level as equities remain in the green.
The RBA released the Minutes of its latest meeting at the beginning of the day, and the document brought some hawkish surprises. The central bank hinted at larger rate hikes in the foreseeable future after raising the cash rate by 15 bps in May. Members agreed that the preferred option was 25 bps, although an increase of 40 bps could be made given the upside risks to inflation and the current very low level of interest rates. Australia will publish on Wednesday the Q1 Wage Price Index, which is foreseen to be up by 2.5% YoY. The improving figure would support the RBA stance and maintain the aussie afloat.
AUD/USD short-term technical outlook
From a technical point of view, the AUD/USD pair has still quite a road ahead before turning bullish. The daily chart shows that the pair is up for a third consecutive day, although technical indicators are losing their positive momentum within negative levels. Meanwhile, the 20 SMA maintains its firmly bearish slope well above the current level and below the longer ones.
The 4-hour chart shows that the pair stalled its recovery around a mildly bearish 100 SMA but also that the 20 SMA gains upward strength below the current level. Technical indicators have retreated from their intraday highs but stabilized well above their midlines, skewing the risk to the upside, particularly if the pair is able to overcome the intraday high.
Support levels: 0.6995 0.9650 0.6920
Resistance levels: 0.7035 0.7070 0.7110
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.