AUD/USD outlook: Hawkish RBA and dovish BoJ underpin recovery

Slobodan Drvenica Windsor Brokers

AUD/USD

AUDUSD recovery from Monday’s spike low (0.6348, the lowest since early Nov 2023) picks up on Wednesday.

Hawkish RBA on Tuesday, with policy diverging from other major central banks, fading fears about US recession and the latest dovish shift from BOJ, were the key positive factors for Aussie dollar.

Fresh acceleration higher (the pair was up 0.85% during Asian / early European trading on Wednesday) cracked pivotal barriers at 0.6560/70 zone (daily Kijun-sen / 50% retracement of 0.6798/0.6348 descent / the base of rising thick daily cloud).

Firm break here to add to bullish signals and expose next strong obstacles at 0.6590/0.6600 (converging 200/100DMA’s), close above which to further strengthen near-term structure and open way for stronger recovery

However, caution is still required as thick daily cloud weighs, north-heading 14-d momentum is still deeply in negative zone and stochastic penetrating overbought territory.

Daily close above 0.6520/10 zone to main term bias.

Res: 0.6573; 0.6590; 0.6601; 0.6626.
Sup: 0.6530; 0.6510; 0.6472; 0.6455.

Interested in AUD/USD technicals? Check out the key levels

1. R3 0.6621
2. R2 0.6581
3. R1 0.6551
PP 0.6512
1. S1 0.6482
2. S2 0.6443
3. S3 0.6413

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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