AUD/USD Current Price: 0.6641
- RBA Governor Philip Lowe reiterated the central bank is not on a pre-set path.
- Australian S&P Global PMIs are expected to show a steeper economic downturn in November.
- AUD/USD is neutral in the near term, but bulls have chances as long as 0.6585 holds.
The AUD/USD pair trades around 0.6640 at the end of the American session, up modest 50 pips on Tuesday. The pair made most of its intraday progress during European trading hours, holding steady in the US session despite the better tone of Wall Street and steady US Treasury yields. US indexes were firmly up after starting the week on the back foot, while the yield on the 10-year Treasury note ticked lower and currently stands at around 3.75%.
Reserve Bank of Australia Governor Philip Lowe offered a speech titled “Price Stability, the Supply Side and Prosperity” and commented on the central bank’s monetary policy. Lowe reiterated that the central bank is not on a pre-set path and could either resume outsize hikes or pause. What he made clear without a doubt is that the RBA expects to raise the rate further over the period ahead.
Australia will release early on Wednesday the preliminary estimates of the November S&P Global PMIs. Manufacturing activity is expected to have contracted to 52.4 from the previous 52.7, while services output is foreseen at 49.1, down from 49.3 in October. It is worth adding that the Reserve Bank of New Zealand will announce its monetary policy decision and is expected to hike the main rate by 75 bps to 4.25%.
AUDUSD short-term technical outlook
From a technical point of view, the AUD/USD pair daily chart shows that it is trading below a mildly bearish 100 SMA while above a bullish 20 SMA, the latter providing dynamic support at around 0.6540. The Momentum indicator turned higher near overbought readings, while the RSI indicator hovers around 56, falling short of supporting and advance but indicating absent selling interest.
In the near term, and according to the 4-hour chart, the pair is neutral. It trades a handful of pips below a flat 20 SMA while the longer moving averages continue to advance below the current level. Technical indicators, in the meantime, remain directionless below their midlines. The pair bottomed on Monday at 0.6584, with a slide below it opening the door for a steeper decline.
Support levels: 0.6630 0.6585 0.6550
Resistance levels: 0.6670 0.6710 0.6745
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.