AUD/USD Forecast: Slightly bearish, looking at 0.6400

Matías Salord FXStreet

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

View Live Chart for the AUD/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.