AUD/USD eyes more downside below 0.6570 on RBA Lowe’s less hawkish remarks

AUD/USD is expected to deliver more losses below 0.6570 as RBA’s Lowe has considered a pause in the policy-tightening spell.
Mounting fears of a recession in the United States have triggered the risk-aversion theme.
RBA’s Lowe believes the reopening of the Chinese economy will positive for the Australian economy.

Sagar Dua FXStreet

The AUD/USD pair is demonstrating volatility contraction after a perpendicular downside move inspired by extremely hawkish remarks from Federal Reserve (Fed) chair Jerome Powell. The Aussie asset is displaying back-and-forth action below 0.6600 and is expected to display more weakness amid less-hawkish commentary from Reserve Bank of Australia (RBA) Governor Philip Lowe despite a one-time slash in Australian inflation.

S&P500 futures have surrendered their nominal losses earned in the early Asian session as the risk profile is getting depressed further. Mounting fears of a recession in the United States have triggered the risk-aversion theme. The US Dollar Index (DXY) has resumed its upside journey and has scaled to a fresh three-month high above 105.70. The alpha generated on 10-year US Treasury bonds has recaptured the 4.0% resistance.

The remarks from RBA Governor Philip Lowe are impacting the Australian Dollar. RBA’s Lowe cited “The central bank is closer to pausing its aggressive cycle of rate increases as the policy is now in the restrictive territory and there are signs the economy was responding.” It seems that the slowdown in January’s monthly Consumer Price Index (CPI) has infused confidence in the sentiment of RBA’s Lowe.

Apart from that, RBA’s Lowe believes that the reopening of the Chinese economy will positive for the Australian economy. It is worth noting that Australia is a leading trading partner of China and a gloomy economic outlook of china will support the Australian Dollar.

Going forward, the US Dollar will be guided by the United States Automatic Data Processing (ADP) Employment Change (Feb) data. According to the estimates, the US economy has added fresh payrolls by 200K, higher than the former release of 106K.

Later this week, the US Nonfarm Payrolls (NFP) data will provide more clarity. Along with that, the release of the Unemployment Rate and Average Hourly Earnings data will be of utmost importance.

AUD/USD

Overview
Today last price	0.6585
Today Daily Change	-0.0007
Today Daily Change %	-0.11
Today daily open	0.6592

Trends
Daily SMA20	0.6828
Daily SMA50	0.6896
Daily SMA100	0.6757
Daily SMA200	0.6787

Levels
Previous Daily High	0.6748
Previous Daily Low	0.6581
Previous Weekly High	0.6784
Previous Weekly Low	0.6695
Previous Monthly High	0.7158
Previous Monthly Low	0.6698
Daily Fibonacci 38.2%	0.6645
Daily Fibonacci 61.8%	0.6684
Daily Pivot Point S1	0.6533
Daily Pivot Point S2	0.6474
Daily Pivot Point S3	0.6366
Daily Pivot Point R1	0.6699
Daily Pivot Point R2	0.6807
Daily Pivot Point R3	0.6866

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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