AUD/USD Current Price: 0.6439
- Bullock replaces Lowe as the new RBA governor.
- The RBA will release the minutes of the August meeting.
- Quiet trading maintains AUD/USD within familiar range above 0.6400.
The AUD/USD reached a four-day low at 0.6416 and then rebounded, erasing losses and rising above 0.6430 on a quiet day as market participants prepare for central bank decisions.
The rebound was helped by an improvement in risk sentiment. Wall Street turned positive, boosting the pair modestly during a quiet session. The tone around the market will likely be decisive for the next hours for the pair.
Michele Bullock began her new role as Resever Bank of Australia (RBA) Governor, replacing Philip Lowe. On Tuesday, the RBA will release the minutes of its September meeting when policy makers decided to keep the key rate unchanged at 4.10% and warned that further monetary tightening may be required. The minutes will unlikely show surprises. The next meeting is scheduled for October 3, and currently, the market does not expect any changes.
In the US, housing data is due on Tuesday. However, the focus is primarily on the FOMC meeting, which will kick off on Tuesday. Market expectations indicate that the Fed will keep rates unchanged. Attention will likely be on the statement and economic projections, as they will help shape the outlook for interest rates.
AUD/USD short-term technical outlook
-638306574140162452.png)
Over the past month, the AUD/USD has been moving sideways near the 0.6400 level within a bearish trend. The key support area has formed around 0.6350. A break below this level could potentially lead to renewed weakness in the pair. On the daily chart, the Australian Dollar is showing mild positive signs as the price is slightly above the flat 20-day Simple Moving Average (SMA). To improve the short-term outlook for the Australian Dollar, the pair needs to consolidate above 0.6500.
On the 4-hour chart, the bias is tilted to the upside but lacks strong conviction. Technical indicators provide no clear clues, with the Relative Strength Index (RSI) flat around 50 and the Momentum moving downward slightly below the midline. The price is hovering around the 20-SMA. Immediate resistance can be found at 0.6445, and a break above that level could open the door for further gains. Near-term support may lie at 0.6420, followed by a dynamic resistance at 0.6410 represented by an uptrend line. A break below 0.6400 would negate the bullish bias.
Support levels: 0.6410 0.6390 0.6355
Resistance levels: 0.6445 0.6475 0.6505
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD loses traction, retreats below 1.0600
EUR/USD lost its recovery momentum and declined below 1.0600 in the American session on Friday, erasing a portion of its daily gains in the process. Nevertheless, the risk-positive market atmosphere after PCE inflation data helps the pair limit its losses.
GBP/USD turns negative on the day below 1.2200
GBP/USD reversed its direction and slumped below 1.2200 in the American session on Friday after rising above 1.2270 earlier in the day. Position readjustments and profit-taking on the last trading day of the quarter seems to be weighing on Pound Sterling.
Gold reverses direction, drops below $1,860
Following a steady rebound toward $1,880 on Friday, Gold price made a sharp U-turn and turned negative on the day near $1,860. Although the 10-year US T-bond yield is down more than 1%, XAU/USD struggles to find demand on the last day of Q3.
Polkadot Price Forecast: DOT reversal seems inevitable after 92% correction from all-time high
Polkadot price, in nearly two years, has shed 92.91% from its all-time high of $55.09. The massive downswing in DOT has pushed it down to levels that were last seen in October 2020. Hence, the chances of this altcoin forming a bottom and rallying are high.
Earnings beat triggers Nike to spike 9%
Nike (NKE) stock has surged over 9% in Friday’s premarket, climbing above $98 per share, following late Thursday’s fiscal first-quarter earnings release. Nike beat pessimistic earnings expectations by more than 23% and hiked its dividend by 9%.