AUD/USD falls for straight fifth trading session on global slowdown fears

AUD/USD refreshes weekly low near 0.6560 as the broader market mood is risk-off.
Fed Powell considered current monetary policy as inadequate to bring down inflation to 2%.
The RBA MPS report indicated that further tightening would be largely dependent on incoming data.

Sagar Dua FXStreet

The AUD/USD pair continues its losing streak for the fifth trading session as fears of a global slowdown have deepened after hawkish commentary from Federal Reserve (Fed) Chair Jerome Powell in his commentary at the International Monetary Fund (IMF) on Thursday.

The S&P500 opens on a bullish note as fears of widening Middle East tensions have started fading. Investors see conflicts remaining contained between Israel and Palestine and may Iran would not intervene. The US Dollar Index (DXY) consolidates near 105.80, struggling to extend recovery, as investors shift focus to US inflation data for October, which will be published next week.

Jerome Powell, in his commentary, showed no confidence in the current monetary policy, considering it inadequate to bring down inflation to 2% in a timely manner.

The expectations that the Fed may not be able to achieve price stability with current interest rates are prompted by a resilient US economy. The world’s largest economy is performing stronger on the grounds of consumer spending and the labor market, which could slow the progress in inflation returning towards 2%.

On the Australian Dollar front, the Reserve Bank of Australia (RBA) released its Monetary Policy Statement (MPS) on early Friday. The report indicated that further tightening would be largely dependent on incoming data. The RBA warned that inflation has turned out persistent more than expected. As per the forecasts, inflation is seen easing to 4.5% by 2023, 3.5% by 2024, and 3.0% by the end of 2025.

AUD/USD

Overview
Today last price	0.6359
Today Daily Change	-0.0008
Today Daily Change %	-0.13
Today daily open	0.6367

Trends
Daily SMA20	0.6369
Daily SMA50	0.639
Daily SMA100	0.65
Daily SMA200	0.6608

Levels
Previous Daily High	0.6428
Previous Daily Low	0.6364
Previous Weekly High	0.6518
Previous Weekly Low	0.6315
Previous Monthly High	0.6445
Previous Monthly Low	0.627
Daily Fibonacci 38.2%	0.6388
Daily Fibonacci 61.8%	0.6404
Daily Pivot Point S1	0.6344
Daily Pivot Point S2	0.6322
Daily Pivot Point S3	0.628
Daily Pivot Point R1	0.6409
Daily Pivot Point R2	0.6451
Daily Pivot Point R3	0.6473

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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