AUD/USD Price Analysis: Needs stability above 0.6500 for a decisive breakout

AUD/USD strives for stability above 0.6500 for a fresh upside ahead of US NFP.
The Australian Dollar as a proxy to Chinese economy might come under pressure if China’s factory activities remain below 50.0.
AUD/USD has been consolidating in a wider range of 0.6336-0.6525 for the past 15 trading sessions.

Sagar Dua FXStreet

The AUD/USD pair consolidates in a narrow range near the psychological resistance of 0.6500 in the New York session. The Aussie asset remains topsy-turvy as investors await the US Nonfarm Payrolls (NFP) for August, which will be published on Friday. In addition to the US NFP, ISM Manufacturing PMI will be keenly watched.

After US Automatic Data Processing (ADP) Employment report, investors hope that the labor market is losing resilience. Firms are operating with the current labor force due to the deteriorating demand environment.

Meanwhile, the Australian Dollar will dance to the tunes of the Caixin Manufacturing PMI data. The Australian Dollar as a proxy to the Chinese economy might come under pressure if China’s factory activities remain below the 50.0 threshold.

AUD/USD has been consolidating in a wider range of 0.6336-0.6525 for the past 15 trading sessions. The Aussie asset is aiming to stabilize above the 200-period Exponential Moving Average (EMA), which trades around 0.6480.

Momentum would turn bullish after the Relative Strength Index (RSI) (14) shifts into the 60.00-80.00 range.

A recovery move above August 15 high around 0.6522 will drive the asset to August 9 high at 0.6571. Breach of the latter will drive the asset towards August 10 high at 0.6616.

In an alternate scenario, a fresh downside would appear if the Aussie asset dropped below August 17 low around 0.6360. This would expose the asset to the round-level support of 0.6300 followed by 03 November 2022 low at 0.6272.

AUD/USD two-hour chart

AUD/USD

Overview
Today last price	0.6477
Today Daily Change	0.0002
Today Daily Change %	0.03
Today daily open	0.6475

Trends
Daily SMA20	0.6474
Daily SMA50	0.6616
Daily SMA100	0.6649
Daily SMA200	0.6724

Levels
Previous Daily High	0.6522
Previous Daily Low	0.6449
Previous Weekly High	0.6488
Previous Weekly Low	0.638
Previous Monthly High	0.6895
Previous Monthly Low	0.6599
Daily Fibonacci 38.2%	0.6477
Daily Fibonacci 61.8%	0.6494
Daily Pivot Point S1	0.6442
Daily Pivot Point S2	0.6409
Daily Pivot Point S3	0.6369
Daily Pivot Point R1	0.6515
Daily Pivot Point R2	0.6555
Daily Pivot Point R3	0.6588

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.

AUD/USD consolidates above 0.7000/two-month low; bearish potential intact

The AUD/USD pair oscillates in a narrow range during the Asian session, and moves little following the release of mixed inflation figures from China. Spot prices currently trade around the 0.7025 region, nearly unchanged for the day, and remain within striking distance of a nearly two-month low set on Tuesday. Renewed hostilities between the US and Iran temper hopes for a deal to end the over three-month-old war.

Japanese Yen languishes despite wholesale inflation accelerates in May

USD/JPY flatlines after experiencing volatility, trading around 160.40 during the Asian hours on Wednesday. The pair continues to hold its ground, reflecting a struggling Japanese Yen that has failed to find support despite a massive acceleration in wholesale inflation. Driven by surging energy costs linked to the ongoing Middle East conflict, Japan’s Producer Price Index jumped 6.3% year-over-year in May. This hot printing comfortably outpaced April’s upwardly revised 5.3% figure and surpassed market consensus of 5.5%, marking the fastest pace of wholesale price growth in three years.

Gold plummets below $4,200 amid US‑Iran tensions ahead of US CPI

Gold extends the recent breakdown momentum below a technically significant 200-day Simple Moving Average (SMA) and drops to a fresh low since March 23, further below the $4,200 mark during the Asian session. Crude Oil prices rise amid renewed hostilities between the US and Iran, fueling inflation fears and bolstering bets for more hawkish central banks.

Bitcoin remains vulnerable, Ethereum weakens further, XRP signals more downside

Bitcoin, Ethereum, and Ripple remain under pressure mid-week, as the broader cryptocurrency market struggles to regain recovery momentum after last week’s massive correction. BTC struggles below $62,000, ETH continues to weaken below $1,650, while XRP’s momentum indicators remain biased toward further downside.

US CPI data set to show inflation at three-year high in May, backing Fed hawkish tilt

The US Bureau of Labor Statistics will publish the May Consumer Price Index (CPI) data on Wednesday. The report is expected to show another step up in consumer inflation, driven by the persistently high Oil prices due to the ongoing crisis in the Middle East.

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.