- AUD/USD managed to resume its uptrend and briefly surpass 0.6900.
- The US Dollar extended its weekly recovery on geopolitical jitters.
- The Ai Group Industry Index improved to -18.6 in September.
AUD/USD faced renewed buying interest and broke above the key 0.6900 the figure once again on Wednesday, all despite another positive day in the US Dollar (USD), this time propped up by increasing tensions in the Middle East.
Indeed, demand for the safe haven universe remained steady on Wednesday, hurting the sentiment around the risk-related assets.
However, the Aussie Dollar weathered the continuation of the march north in the Greenback on the back of decent gains in copper prices and further consolidation in the upper range in iron ore prices, all in response to the recently announced stimulus packages aimed at breathing some signs of life into China’s economy.
On the monetary policy front, the Reserve Bank of Australia (RBA) left rates unchanged at 4.35% during its September 24 meeting, in line with expectations. The RBA signalled it would monitor inflation risks, but Governor Michele Bullock downplayed any imminent rate hikes, noting that a rate increase wasn’t seriously considered.
Markets are currently pricing in a 55% chance of a 25-basis-point rate cut by year-end. The RBA is expected to be among the last G10 central banks to cut rates, with reductions likely later this year due to weak economic activity that is expected to ease inflationary pressures.
While Federal Reserve rate cuts are already factored into the market, AUD/USD could see further gains in 2024, though uncertainties surrounding China’s economy and its stimulus measures linger.
In terms of data, Australia’s Ai Group Industry Index improved to -18.6 in September.
AUD/USD daily chart
AUD/USD short-term technical outlook
Further upside could see AUD/USD retest its 2024 peak of 0.6942 (September 30) before challenging the critical 0.7000 level.
On the other side, there is early contention around the September low of 0.6622 (September 11), which is supported by the significant 200-day SMA (0.6626), before hitting the 2024 bottom of 0.6347 (August 5).
The four-hour chart indicates the resumption of the bullish trend. Having said that, the initial resistance is 0.6942, which precedes 0.7024. On the downside, the initial support level is 0.6856, followed by 0.6817. The RSI eased to around 48.
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 retreats from fresh multi-year highs, holds above 1.1000
EUR/USD neared 1.1150 in the European session on Thursday, shedding roughly 100 pips afterwards. The Euro holds on to solid gains amid broad US Dollar weakness, after US President Trump unveiled aggressive tariffs on the "Liberation Day." Markets await mid-tier US data releases.
GBP/USD surges to multi-month tops near 1.3200 ahead of US data
GBP/USD is extending its upbeat momentum toward 1.3200 in European trading on Thursday as the US Dollar slumps to a fresh YTD low. Worries about a tariff-driven US economic slowdown lift Fed rate cut bets and weigh on the Greenback. The focus now remains on the US data for further impetus.
Gold retreats below $3,100 from all-time peak
Gold price extends its steady intraday pullback from the all-time peak touched this Thursday, and pierces the $3,100 mark in the European session. Bullish traders opt to take some profits off the table and lighten their bets around the commodity amid slightly overbought conditions.
SOL is the winner as Solana chain turns into battleground for meme coin launchpad and DEX
Solana (SOL) gains nearly 2% in the last 24 hours and trades at 118.28 at the time of writing on Thursday. A Decentralized Exchange (DEX) and a meme coin launchpad built on the Solana blockchain have waged a war for users and compete for the trade volume on the chain.
Trump’s “Liberation Day” tariffs on the way
United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.