AUD/USD Forecast: Limited enthusiasm despite a better market mood

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6458

The RBA left its monetary policy unchanged as expected.
Australian Retail Sales is seen up by 8.2% in March.
AUD/USD slightly bullish, stronger momentum seen once beyond 0.6515.

The AUD/USD pair is up heading into the Asian session, some 20 pips higher from where it left on Monday. The Reserve Bank of Australia had a monetary policy meeting, yet as expected, the monetary policy was left unchanged. Governor Lowe acknowledged the “economy is going through a very difficult period and there is considerable uncertainty about the outlook," although he added there’s room for a strong recovery if the economic activity returns.

The pair managed to advance on the back of rallying equities, partially offset by renewed dollar’s strength. Australia also released the April AIG Performance of Construction Index which plunged to 21.6 from 37.9 previously. This Wednesday, the country will publish March Retail Sales, foreseen at 8.2%.

AUD/USD short-term technical outlook

The AUD/USD pair is within familiar levels, with a slightly positive short-term bias. In the 4-hour chart, technical indicators have entered positive territory, but lack strength enough to confirm additional gains ahead. Over the last few hours, the pair has held above a bearish 20 SMA, unable to move far away from it. The bullish potential, however, remains limited as long as it stays below the 0.6510 price zone.

Support levels: 0.6410 0.6375 0.6350

Resistance levels: 0.6480 0.6515 0.6560

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

Japanese Yen gains ground as traders await Fed rate decision

The USD/JPY pair loses ground to near 160.25 during the early European trading hours. Traders prefer to wait on the sidelines ahead of the US Federal Reserve interest rate decision under new Chair Kevin Warsh later on Wednesday.

AUD/USD puts 0.7000 to the test on solid Dollar

In line with the rest of its risk-linked peers, AUD/USD retreats markedly and challenges the key 0.7000 support ahead of the opening bell in Asia. The robust performance of the Greenback hurt the sentiment around the Aussie Dollar, dragging spot lower following the FOMC event.

Gold extends intraday slide towards $4,250

Gold turned negative by the end of Wednesday and trades in the $4,260 price zone. The US Federal Reserve left rates unchanged, but delivered a hawkish message, even though Chair Kevin Warsh refused to provide forward guidance.

Two altcoins to watch as DeFi market cap nears $70B

Decentralized Finance (DeFi) tokens exhibit mixed signals on Wednesday, with Uniswap (UNI) slightly pulling back from an early-week rally to highs around $3.73, while Aster (ASTER) extends its recovery near $0.80. Bitcoin (BTC) holds above $65,000 following a rejection at June highs around $67,000.

The next big AI trade may not be about chips or software

Artificial intelligence has already created some of the biggest winners in modern market history. Chipmakers have surged, data centre construction is booming, and electricity demand forecasts are changing globally.

Why a hawkish RBA is no longer enough to lift the Australian Dollar

The Reserve Bank of Australia delivered more than what markets expected: a hawkish hold that should have supported the Aussie. But markets widely ignored it, focusing instead on slowing economic growth and proving that central bank messaging alone isn’t always enough to drive currencies.