|

AUD/USD Price Forecast: Slips below 0.66 on US Dollar strength

  • AUD/USD drops 0.31% after two-week high, pressured by renewed US Dollar strength.
  • RSI momentum favors bears, with support near 200-day SMA if downside extends.
  • Traders eye Fed tone and US data as optimism for RBA tightening fades.

The AUD/USD ended Thursday session with losses of 0.31%, beneath the 0.6600 figure after reaching a two-week high of 0.6617 following a red-hot inflation report two days ago that increased the chances that the Reserve Bank of Australia (RBA) would likely keep rates unchanged. At the time of writing, the pair trades at 0.6552 as Friday’s Asian session begins.

AUD/USD Price Forecast: Technical Outlook

The bias for the AUD/USD remains sideways, though recent US Dollar strength, could push the pair towards the confluence of the 100-day and 20-day SMAs at 0.6535/32. Bears are gathering momentum as shown by the Relative Strength Index (RSI) aiming towards its 50-neutral line.

If AUD/USD tumbles below 0.6533 it would resume the downswing, towards 0.6600 with further support lying at the 200-day SMA at 0.6443. A decisive break will expose the June 23 low at 0.6372.

On the flipside, a move above 0.6561 clears the path to test 0.6600. A breach of the latter will expose the October 29 high at 0.6617 and 0.6650.

AUD/USD Price Chart – Daily

AUD/USD daily chart

Australian Dollar Price This Month

The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies this month. Australian Dollar was the strongest against the Japanese Yen.

USDEURGBPJPYCADAUDNZDCHF
USD1.43%2.20%4.21%0.46%0.90%0.91%0.66%
EUR-1.43%0.78%2.73%-0.96%-0.50%-0.49%-0.76%
GBP-2.20%-0.78%1.97%-1.72%-1.26%-1.25%-1.51%
JPY-4.21%-2.73%-1.97%-3.56%-3.18%-2.93%-3.31%
CAD-0.46%0.96%1.72%3.56%0.44%0.46%0.20%
AUD-0.90%0.50%1.26%3.18%-0.44%0.01%-0.26%
NZD-0.91%0.49%1.25%2.93%-0.46%-0.01%-0.26%
CHF-0.66%0.76%1.51%3.31%-0.20%0.26%0.26%

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).

Author

Christian Borjon Valencia

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

More from Christian Borjon Valencia
Share:

Editor's Picks

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY approaches 158.00 as Japanese Yen resumes decline

USD/JPY is resuming its upside in the European session on Friday, refreshing two-week highs and nearing 158.00. The Japanese Yen extends losses, despite the Bank of Japan's (BoJ) expected rate hike to 1.25% and hawkish Governor Ueda's comments, as two surprise dissents against the rate hike weigh on it.

Gold keeps the bid tone in place; still below $4,400

Gold adds to the optimism seen in the second half of the week, trading with decent gains just below the $4,400 mark per troy ounce on Friday. The precious metal’s advance finds traction in declining crude oil prices and fresh selling pressure on the US Dollar.

Why altcoin season isn't coming back — and what stole its capital
If, after two years of being frozen in ice, Katara and Sokka woke you up to the crypto market, it would seem like 100 years have passed. With Bitcoin soaring to record highs just over a year ago, everyone expected a routine altcoin season, where investors take profits from the top crypto to chase higher returns in altcoins.
BoJ Recap: Not as hawkish as expected

The BoJ raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks. Governor Kazuo Ueda said the policy phase had changed.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.