AUD/USD Forecast: Slightly bearish, looking at 0.6400
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UPGRADEAUD/USD Current Price: 0.6423
- The US Dollar index hit fresh monthly highs above 106.00.
- High US yields and cautious market sentiment continue to support the Greenback.
- The AUD/USD pair maintains a bearish tone in the short-term, moving within a wide range.
On Monday, the AUD/USD lost ground due to a stronger US Dollar, supported by higher Treasury yields and cautious market sentiment. The pair bottomed out at 0.6405 and then rebounded towards 0.6425. It continues to move sideways, with a moderately tilted downside risk.
The Greenback remains strong, recovering after a correction on Friday. The US Dollar Index rose to 106.10, reaching its highest level since November, before pulling back slightly. It remains firm due to higher yields, as the market expects rates to stay high for a longer period of time. The 10-year Treasury yield reached a fresh multi-year high at 4.52%.
The next key report from Australia will be the Monthly Consumer Price Index, scheduled for Wednesday. In the US, on Tuesday, Consumer Confidence, New Home Sales, and the Richmond Fed Manufacturing Index are due. The crucial figures will be released on Friday: the Core Personal Consumption Expenditure Price Index.
AUD/USD short-term technical outlook
The AUD/USD continues to move sideways in a wide range between 0.6500 and the key support at 0.6350. The daily chart does not provide clear indications as the main trend is down, but there are mixed signals from the indicators.
On the 4-hour chart, the pair dropped below the 20-Simple Moving Average (SMA) on Monday, suggesting a slightly bearish short-term outlook. The next support stands at 0.6400, and a break lower would expose the crucial 0.6350 support level.
If the Aussie manages to rise back above 0.6425, it could extend towards the 0.6445 area. The key level to watch in the short term is 0.6475, and a break higher would potentially lead to another test of the 0.6500 area.
Support levels: 0.6400 0.6370 0.6350
Resistance levels: 0.6445 0.6475 0.6500
AUD/USD Current Price: 0.6423
- The US Dollar index hit fresh monthly highs above 106.00.
- High US yields and cautious market sentiment continue to support the Greenback.
- The AUD/USD pair maintains a bearish tone in the short-term, moving within a wide range.
On Monday, the AUD/USD lost ground due to a stronger US Dollar, supported by higher Treasury yields and cautious market sentiment. The pair bottomed out at 0.6405 and then rebounded towards 0.6425. It continues to move sideways, with a moderately tilted downside risk.
The Greenback remains strong, recovering after a correction on Friday. The US Dollar Index rose to 106.10, reaching its highest level since November, before pulling back slightly. It remains firm due to higher yields, as the market expects rates to stay high for a longer period of time. The 10-year Treasury yield reached a fresh multi-year high at 4.52%.
The next key report from Australia will be the Monthly Consumer Price Index, scheduled for Wednesday. In the US, on Tuesday, Consumer Confidence, New Home Sales, and the Richmond Fed Manufacturing Index are due. The crucial figures will be released on Friday: the Core Personal Consumption Expenditure Price Index.
AUD/USD short-term technical outlook
The AUD/USD continues to move sideways in a wide range between 0.6500 and the key support at 0.6350. The daily chart does not provide clear indications as the main trend is down, but there are mixed signals from the indicators.
On the 4-hour chart, the pair dropped below the 20-Simple Moving Average (SMA) on Monday, suggesting a slightly bearish short-term outlook. The next support stands at 0.6400, and a break lower would expose the crucial 0.6350 support level.
If the Aussie manages to rise back above 0.6425, it could extend towards the 0.6445 area. The key level to watch in the short term is 0.6475, and a break higher would potentially lead to another test of the 0.6500 area.
Support levels: 0.6400 0.6370 0.6350
Resistance levels: 0.6445 0.6475 0.6500
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