• AUD/USD reached a multi-year low at around 0.6574 but bounced back and is gaining 0.29%.
  • The Summary of Economic Projections (SEP) reported that Fed officials see rates at around 4.4% by the end of 2022.
  • The US Department of Labor reported that Jobless Claims rose less than estimated but exceeded the previous reading.

The AUD/USD rebounds off YTD lows reached at around 0.6574 and is back above the 0.6600 psychological figure as the greenback weakens, following an aggressive rate hike by the Fed, which opened the door for further increases. Even though the previously mentioned would support the greenback, the AUD/USD climbs, trading at 0.6642 at the time of writing.

Global equities remain on the back foot, recording hefty losses. Worldwide central banks continue to tighten monetary conditions amidst a period of two-digit inflation in some countries. On Wednesday, the Fed raised rates by 75 bps. According to the Summary of Economic Projections (SEP), Fed officials estimate another 120 bps of rate increases, seeing the Federal funds rate (FFR) at around 4.4% by the year-end.

AUD/USD is recovering as the US dollar falls

On Thursday, the Labor Department showed that claims for unemployment in the US for the last week, which ended on September 17, increased by 213K, less than the 217K estimated, but above the previous reading, downward revised to 208K. The number of people receiving benefits after an initial week of aid decreased by 22K to 1.379 million in the week ended on September 10.

In the meantime, an absent Australian economic docket left traders to keep digesting the RBA’s minutes released earlier. The central bank noted that it was not in a “pre-set path and would be balanced to try and keep the economy on an even keel.” Furthermore, most of RBA’s board members have begun to assess the possibility of raising rates at a slower pace as the cash rate rises.

However, Westpac analysts expect the RBA to hike 50 bps in October, followed by 25 bps in November, December, and February, lifting rates to 3.6%.

What to watch

On Friday, the Australian economic docket will feature the S&P Global Manufacturing, Services and Composite PMIs.

The US calendar will also reveal the S&P Global PMIs alongside Fed Chair Jerome Powell’s speech at around 18:00 GMT.

AUD/USD Key Technical Levels

AUD/USD

Overview
Today last price 0.6642
Today Daily Change 0.0013
Today Daily Change % 0.20
Today daily open 0.6629
 
Trends
Daily SMA20 0.6792
Daily SMA50 0.6884
Daily SMA100 0.6938
Daily SMA200 0.71
 
Levels
Previous Daily High 0.6706
Previous Daily Low 0.6622
Previous Weekly High 0.6916
Previous Weekly Low 0.667
Previous Monthly High 0.7137
Previous Monthly Low 0.6835
Daily Fibonacci 38.2% 0.6654
Daily Fibonacci 61.8% 0.6673
Daily Pivot Point S1 0.6599
Daily Pivot Point S2 0.6568
Daily Pivot Point S3 0.6515
Daily Pivot Point R1 0.6683
Daily Pivot Point R2 0.6736
Daily Pivot Point R3 0.6767

 

 

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