- AUD/USD rallies to near 0.6500 as the PBoC maintains a dovish interest rate policy.
- The Fed is expected to keep interest rates unchanged at 5.25-5.50% as the US inflation has been consistently falling.
- AUD/USD rebounds after discovering buying interest near the horizontal support around 0.6364.
The AUD/USD pair delivered a rally to near the psychological resistance of 0.6500 in the late European session. The Aussie asset picked strength after the People’s Bank of China (PBOC) kept its one-year and five-year Loan Prime Rate (LPR) unchanged at 3.45% and 4.20% respectively.
The PBoC was expected to maintain a dovish interest rate policy as the Chinese economy is under pressure due to upside deflation risks. Further policy expansion would support the economy to find footing amid a bleak economic outlook.
Meanwhile, the show-stopper event for the FX domain is the interest rate decision by the Federal Reserve (Fed). The US central bank is expected to keep interest rates unchanged at 5.25-5.50%. As the US inflation has been consistently falling while maintaining economic resilience, the Fed has the opportunity to skip the policy tightening regime for the second time in its current tightening cycle.
AUD/USD rebounds after discovering buying interest near the horizontal support plotted from August 17 low around 0.6364 on a two-hour scale. The Aussie asset stabilizes above the 20-day Exponential Moving Average (EMA), which trades around 0.6340. Potential resistance is plotted from August 15 high at 0.6522.
The Relative Strength Index (RSI) (14) jumps above 60.0, which indicates that the bullish impulse has been triggered.
A decisive break 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.
On the flip side, fresh downside would appear if the Aussie asset will drop 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
-638308092578745528.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD climbs above 1.1650 area on improving risk mood
EUR/USD extends its daily rally and trades above 1.1650 in the American session on Friday. The sharp decline seen in the 1-year Consumer Inflation Expectations component of the UoM Consumer Sentiment Index weighs on the US Dollar and helps the pair push higher.
GBP/USD rises above 1.3450 on USD weakness
GBP/USD gathers bullish momentum and trades above 1.3450 on Friday after struggling to find direction on Thursday. The positive shift seen in market mood and the pullback seen in US consumer inflation expectations hurt the US Dollar and support the pair heading into the weekend.
Gold extends daily recovery beyond $3,350
Gold gains traction on Friday and clings to daily gains above $3,350. Renewed US Dollar (USD) weakness and retreating US Treasury bond yields allow XAU/USD to edge higher, while the upbeat market mood limits the pair's upside.
Bitcoin nears all-time high, Ethereum eyes $4,000, Ripple sets new record
Bitcoin price is trading above $120,000 on Friday, inching closer to its all-time high of $123,218. Ethereum price has surged by over 20% so far this week, with bulls aiming for the $4,000 level next. Ripple has taken center stage, reaching a new record high of $3.66 on Friday, signaling renewed demand and optimism across the market.
China’s first-half growth remains on track, though activity data signals caution
China's second-quarter GDP beat forecasts again with a 5.2% year-on-year growth, driven by strong trade and industrial production. Yet sharper-than-expected slowdowns in fixed-asset investment and retail sales and falling property prices are a concern.
Best Brokers for EUR/USD Trading
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.