AUD/USD eyes downside to near 0.6500, focus shifts to US Durable Goods data

The AUD/USD pair has opened around the previous week’s low at 0.6511 and is expected to remain on the tenterhooks as risk-off prospects have soared after the warning from Russian leader Vladimir Putin. The Russian Federation has warned of a nuclear attack in retaliation against the western sanctions. After Russia invaded Ukraine, G-7 countries are still levying sanctions on Russia regarding oil prices and SWIFT remittances from other countries.

The asset is hovering around the previous week’s low and is expected to drop near the psychological support of 0.6500. Apart from the risk-off market mood, the impact of the hawkish guidance from the Federal Reserve (Fed) is expected to remain for a longer period.

The Fed sees that the interest rates will peak around 4.6% which seems optimal to tackle inflationary pressures. The announcement has undoubtedly forced institutional investors to trim their growth projections forecasts for employment numbers and housing sales.

In the future, investors will focus on the US Durable Goods Orders data, which is expected to decline by 1.1% against a decline of 0.1% reported earlier. Investors should be aware that inflationary pressures remained lower in August as the US headline Consumer Price Index (CPI) dropped to 8.3% from the prior release of 8.5%.

Therefore a decline in the price pressures is expected to impact Retail Sales too. Also, the gasoline demand has remained eternally poor in the past three weeks, which will affect the Retail Sales data.

Technical levels