AUD/USD Price Forecast: Rising 20-day EMA supports near-term bullish bias

Australian Dollar trades lower against its peers despite hawkish remarks from RBA’s Hauser.
RBA’s Hauser warns of interest rate hikes, citing upside risks to inflation.
Investors await FOMC Minutes and the Aussie employment data for July.

Sagar Dua FXStreet

The Australian Dollar (AUD) underperforms its major currency peers on Wednesday, trading 0.17% lower at around 0.7070 against the US Dollar (USD) during the European trading session. The antipodean faces selling pressure even as Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser has kept the door open for further monetary policy tightening.

Australian Dollar Price Today

The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the New Zealand Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.18%	-0.14%	-0.24%	-0.15%	0.23%	0.04%	-0.22%
EUR	0.18%		0.03%	-0.09%	0.06%	0.39%	0.19%	-0.04%
GBP	0.14%	-0.03%		-0.11%	0.02%	0.38%	0.18%	-0.09%
JPY	0.24%	0.09%	0.11%		0.11%	0.46%	0.27%	0.00%
CAD	0.15%	-0.06%	-0.02%	-0.11%		0.35%	0.16%	-0.10%
AUD	-0.23%	-0.39%	-0.38%	-0.46%	-0.35%		-0.18%	-0.43%
NZD	-0.04%	-0.19%	-0.18%	-0.27%	-0.16%	0.18%		-0.25%
CHF	0.22%	0.04%	0.09%	-0.01%	0.10%	0.43%	0.25%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).

Earlier in the day, RBA’s Hauser said, “Inflation is too high, and the central bank needs to raise interest rates to bring price pressures down.” Hauser added, “Monetary policy needs to bring inflation down and reduce demand in the economy.”

Meanwhile, the US Dollar also trades lower as fears of a Federal Reserve (Fed) interest rate hike in the September meeting have receded due to weak United States (US) data for July.

Later in the day, investors will focus on the Federal Open Market Committee (FOMC) minutes of the July policy meeting, which will be published at 18:00 GMT.

In Australia, investors will focus on the Aussie employment data for July, which will be released on Thursday.

AUD/USD Technical Analysis

AUD/USD trades at 0.7073, holding a constructive near-term bullish bias as spot remains above the 20-period exponential moving average (EMA) at 0.7045, suggesting buyers retain control on dips.

The Relative Strength Index (14) at 57.6 stays in positive territory without being overbought, hinting that upside momentum is present but not stretched.

On the downside, immediate support is seen at the 20-day EMA at 0.7045, where fresh buying interest could emerge if the pair retreats. On the upside, the August 17 high at 0.7129 is the key hurdle for the pair.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Economic Indicator

FOMC Minutes

FOMC stands for The Federal Open Market Committee that organizes 8 meetings in a year and reviews economic and financial conditions, determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. FOMC Minutes are released by the Board of Governors of the Federal Reserve and are a clear guide to the future US interest rate policy.

Why it matters to traders?

Minutes of the Federal Open Market Committee (FOMC) is usually published three weeks after the day of the policy decision. Investors look for clues regarding the policy outlook in this publication alongside the vote split. A bullish tone is likely to provide a boost to the greenback while a dovish stance is seen as USD-negative. It needs to be noted that the market reaction to FOMC Minutes could be delayed as news outlets don’t have access to the publication before the release, unlike the FOMC’s Policy Statement.

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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