|

AUD/USD Price Analysis: Recovers further from YTD low, eyes FOMC minutes for fresh impetus

  • AUD/USD rebounds from a fresh YTD low touched on Wednesday amid a modest USD slide.
  • China’s economic woes might cap gains for the Aussie ahead of the FOMC meeting minutes.
  • Any subsequent move up is more likely to confront a stiff barrier near the 0.6520 confluence.

The AUD/USD pair stages a goodish intraday recovery from the 0.6430-0.6425 region, or its lowest level since November 2022 touched this Wednesday and builds on the momentum through the early part of the European session. Spot prices climb to a fresh daily top, around the 0.6480 region in the last hour and for now, seem to have snapped a six-day losing streak.

Retreating US Treasury bond yields, along with a positive tone around the US equity futures, exerts downward pressure on the safe-haven US Dollar (USD) and prompts some short-covering around the AUD/USD pair. That said, growing concerns about the worsening economic conditions in China might cap gains for the China-proxy Aussie. Traders might also refrain from placing aggressive bets and prefer to wait on the sidelines ahead of the FOMC meeting minutes, due for release later during the US session.

From a technical perspective, the momentum lifts the AUD/USD pair beyond the 23.6% Fibonacci retracement level of the recent downfall witnessed over the past week or so. Moreover, oscillators on the 1-hour chart have just started gaining positive traction and support prospects for further intraday appreciating move. Hence, a subsequent strength towards a confluence hurdle near the 0.6500 psychological mark, comprising the 100-hour Simple Moving Average (SMA) and the 38.2% Fibo., looks like a distinct possibility.

That said, technical indicators on the daily chart are holding deep in the bearish territory and suggest that the recovery move could run out of steam near the weekly peak, around the 0.6520 area, set on Tuesday. The said area marks another confluence, comprising the 200-hour SMA and the 50% Fibo. level, which should now act as a key pivotal point. A sustained strength beyond might suggests that the AUD/USD pair has bottomed and shift the bias in favour of bulls, paving the way for some meaningful recovery.

On the flip side, the YTD low, around the 0.6430-0.6425 region, now seems to protect the immediate downside ahead of the 0.6400 round-figure mark. Some follow-through selling will be seen as a fresh trigger for bearish traders and set the stage for the resumption of the recent downward trajectory witnessed over the past month or so, from the 0.6900 double-top resistance. The AUD/USD pair might then weaken further towards the 0.6360 intermediate support en route to the 0.63000 mark and the 0.6265 zone.

AUD/USD 1-hour chart

fxsoriginal

Technical levels to watch

AUD/USD

Overview
Today last price0.6476
Today Daily Change0.0021
Today Daily Change %0.33
Today daily open0.6455
 
Trends
Daily SMA200.6626
Daily SMA500.6693
Daily SMA1000.6678
Daily SMA2000.6737
 
Levels
Previous Daily High0.6522
Previous Daily Low0.6452
Previous Weekly High0.6617
Previous Weekly Low0.6486
Previous Monthly High0.6895
Previous Monthly Low0.6599
Daily Fibonacci 38.2%0.6478
Daily Fibonacci 61.8%0.6495
Daily Pivot Point S10.643
Daily Pivot Point S20.6405
Daily Pivot Point S30.6359
Daily Pivot Point R10.6501
Daily Pivot Point R20.6547
Daily Pivot Point R30.6571

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

More from Haresh Menghani
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD rebounds after falling toward 1.1700

EUR/USD gains traction and trades above 1.1730 in the American session, looking to end the week virtually unchanged. The bullish opening in Wall Street makes it difficult for the US Dollar to preserve its recovery momentum and helps the pair rebound heading into the weekend.

GBP/USD steadies below 1.3400 as traders assess BoE policy outlook

Following Thursday's volatile session, GBP/USD moves sideways below 1.3400 on Friday. Investors reassess the Bank of England's policy oıtlook after the MPC decided to cut the interest rate by 25 bps by a slim margin. Meanwhile, the improving risk mood helps the pair hold its ground.

Gold stays below $4,350, looks to post small weekly gains

Gold struggles to gather recovery momentum and stays below $4,350 in the second half of the day on Friday, as the benchmark 10-year US Treasury bond yield edges higher. Nevertheless, the precious metal remains on track to end the week with modest gains as markets gear up for the holiday season.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid bearish market conditions

Bitcoin (BTC) is edging higher, trading above $88,000 at the time of writing on Monday. Altcoins, including Ethereum (ETH) and Ripple (XRP), are following in BTC’s footsteps, experiencing relief rebounds following a volatile week.

How much can one month of soft inflation change the Fed’s mind?

One month of softer inflation data is rarely enough to shift Federal Reserve policy on its own, but in a market highly sensitive to every data point, even a single reading can reshape expectations. November’s inflation report offered a welcome sign of cooling price pressures. 

XRP rebounds amid ETF inflows and declining retail demand demand

XRP rebounds as bulls target a short-term breakout above $2.00 on Friday. XRP ETFs record the highest inflow since December 8, signaling growing institutional appetite.