• AUD/USD is marching towards 0.6600 amid upbeat market sentiment.
  • The DXY has plummeted below 113.00 despite hawkish commentary from the Fed policymaker.
  • Aussie dollar has benefitted from higher-than-expected monthly Retail Sales data.

The AUD/USD pair is witnessing a mark-up inventory accumulation phase after displaying a juggernaut rally to near 0.6530. The asset is expected to extend its recovery and will march towards the critical hurdle of 0.6600. Earlier, the commodity-linked currency rebounded firmly after dropping to near 0.6360. The major advanced vertically as investors shrugged off pessimism and poured funds into the risk-sensitive currencies.

The US dollar index (DXY) plummeted like there is no tomorrow after failing to sustain above the critical hurdle of 114.50. A failure in hitting the round-level resistance of 115.00 dragged the DXY sharply to near 112.71. This indicates that risk sentiment has turned positive for a while as a ‘value bet’ context doe risk-perceived assets kicked in.

Comments from Federal Reserve (Fed) policymakers are advocating a continuation of the current pace of hiking interest rates. Atlanta Fed President Raphael Bostic started to cross wires on Wednesday stating that the baseline scenario right now includes a 75 basis points (bps) rate hike in November followed by a 50 bps increase in December, as reported by Reuters. He further cited that the inflation thing is too high and has not responded well to the policy tightening measures.

Going forward, the US Gross Domestic Product (GDP) data will be keenly watched. The annualized data for the second quarter is expected to decline by 0.6%, similar to the prior reading.

On the Australian front, aussie dollar has benefitted from better-than-projected monthly Retail Sales data. The economic data landed at 0.6%, higher than the estimates of 0.4%, but lower than the prior release of 1.3%. As the Reserve Bank of Australia (RBA) is tightening its policy heavily to combat the galloping inflation, higher-than-expected Retail Sales data has delighted the central bank.

AUD/USD

Overview
Today last price 0.6521
Today Daily Change 0.0086
Today Daily Change % 1.34
Today daily open 0.6435
 
Trends
Daily SMA20 0.6712
Daily SMA50 0.686
Daily SMA100 0.6917
Daily SMA200 0.7087
 
Levels
Previous Daily High 0.6513
Previous Daily Low 0.6414
Previous Weekly High 0.6748
Previous Weekly Low 0.6512
Previous Monthly High 0.7137
Previous Monthly Low 0.6835
Daily Fibonacci 38.2% 0.6452
Daily Fibonacci 61.8% 0.6475
Daily Pivot Point S1 0.6395
Daily Pivot Point S2 0.6355
Daily Pivot Point S3 0.6295
Daily Pivot Point R1 0.6494
Daily Pivot Point R2 0.6553
Daily Pivot Point R3 0.6593

 

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD fades recovery moves above 0.6700 ahead of RBA Bulletin, Australia Trade Balance

AUD/USD fades recovery moves above 0.6700 ahead of RBA Bulletin, Australia Trade Balance

AUD/USD struggles to defend the latest bullish impulse around 0.6725-30, after bouncing off a one-week low the previous day, as traders await updates/data from Australia during early Thursday.

AUD/USD News

EUR/USD: Bulls rejected and bears eye break below 1.0480

EUR/USD: Bulls rejected and bears eye break below 1.0480

1.0550 is capping the bulls that look for space above 1.0600. The price moved in on the support zone and has found buyers again. The bulls eye an upside continuation with 1.0600 on the radar on a break of the bull cycle highs.

EUR/USD News

Gold eyes further upside on downbeat United States Treasury bond yields

Gold eyes further upside on downbeat United States Treasury bond yields

Gold price seesaws around $1,785, after posting the biggest daily gains in a week, as buyers seek more clues to approach the five-month top marked earlier in the week. The yellow metal’s latest run-up could be linked to the downbeat performance of the United States Treasury bond yields.

Gold News

Binance’s US arm eliminating trading fees for ETH means this for Ethereum price

Binance’s US arm eliminating trading fees for ETH means this for Ethereum price

Binance has managed to cement itself in the crypto space as a leader over the last couple of weeks. Following FTX’s collapse, the world’s biggest cryptocurrency exchange has been attempting to regain its customers’ trust and confidence.

Read more

What happens after the Fed reaches the terminal rate

What happens after the Fed reaches the terminal rate

The discrepancy starts to show. What will the Fed do? For now, the Fed is raising rates to stave off inflation, and are expected to level out at around 5.0%. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures