AUD/USD Price Analysis: Finds interim support near 0.6400 as US Dollar corrects
|- AUD/USD rebounds from below 0.6400 as the USD Index fails to extend the rally.
- Investors await the Australian inflation data, which is seen accelerating to 5.2% vs. July’s reading of 4.9%.
- The Aussie asset is forming a Descending Triangle chart pattern, which demonstrates a volatility contraction.
The AUD/USD pair attempts recovery after discovering buying interest near the round-level support of 0.6400 in the European session. The Aussie asset finds support as the US Dollar Index (DXY) struggles to extend a rally above a fresh 10-month high near 106.20.
S&P500 futures generated significant losses in the London session, portraying strength in the risk-aversion theme. The US Dollar is expected to remain on tenterhooks as investors await the United States Durable Goods Orders data for August, which will be released on Wednesday. The economic data is seen contracting at a slower pace of 0.4% vs. July’s contraction of 5.2%.
Meanwhile, the Australian Dollar is expected to remain on the tenterhooks ahead of the monthly Consumer Price Index (CPI) data for August. The Australian inflation is seen accelerating to 5.2% vs. July’s reading of 4.9%. A rebound in Australian inflation could be the outcome of the rising energy prices due to the global oil rally.
AUD/USD rebounds after testing September 21 low near 0.6385 on an hourly scale. The downward-sloping trendline from September 20 high at 0.6511 continues to act as a major barricade for the Australian Dollar bulls. The Aussie asset is forming a Descending Triangle chart pattern, which demonstrates a volatility contraction.
The 20-period Exponential Moving Average (EMA) at 0.6416 is acting as a major barricade for the Aussie bulls.
Meanwhile, the Relative Strength Index (RSI) (14) manages to defend slipping completely into the bearish range of 20.00-40.00.
A decisive break above August 15 high around 0.6522 will drive the asset to August 9 high at 0.6571. Breach of the latter will drive the asset towards August 10 high at 0.6616.
On the flip side, a fresh downside would appear if the Aussie asset drops below August 17 low around 0.6360. This would expose the asset to the round-level support of 0.6300 followed by 03 November 2022 low at 0.6272.
AUD/USD two-hour chart
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.