• AUD/USD hit a daily low of around 0.6929 but tumbled as sentiment shifted sour.
  • Global equities dropped as investors brace for Fed’s Jerome Powell speech on Friday.
  • China’s PBoC’s rate cut lifted the AUD/USD just above the 0.6900 figure before dropping towards daily lows.

The AUD/USD slightly declines in the North American session, amidst a risk-off tone in the market, with global equities sliding, as traders brace for Fed Chair Jerome Powell’s speech on Friday. Reflection of the aforementioned is global equities tumbling, led by US stocks, down between 1.40% and 2.30%.

The AUD/USD is trading at 0.6875 below its opening price by 0.02%, after hitting a daily high of 0.6929, just above the 50-day EMA. Nevertheless, the major softened and dropped from the 0.6900 figure due to broad US dollar strength.

Meantime, the US Dollar Index, a gauge of the buck’s value vs. a basket of peers, advances almost 0.60%, up at 108.729, closing to the YTD high at 10.9.294.

In the meantime, a lack of economic data keeps traders focused on the Jackson Hole event. Worth noting that last week’s Fed’s policymakers continued expressing that although inflation data is encouraging, the central bank is far from declaring victory. Even the most dovish, like Kansas City Fed’s Esther George, expressed that additional rate hikes are coming, though she mentioned that the size of increases is open for discussions.

At the time of writing, money market futures STIRs show that investors have fully priced in a 50 bps rate hike by the Federal Reserve, while odds of a 75 bps increase lie at 82.8%.

Aside from this, early in the Asian session, the People’s Bank of China (PBoC) cut its benchmark lending rate by 5 bps from 3.70% to 3.65% to stimulate the economy. The AUD/USD jumped towards 0.6906 on China’s decision, which benefits the Australian economy, as China is one of its largest trading partners.

What to watch

The Australian economic docket will feature the Australian S&P Global PMIs for the August readings, estimated to decrease, except for the Services PMI. On the US side, the calendar will release the S&P Global PMIs, a prelude for next week’s ISM PMI figures, alongside Fed speakers, led by Minnesota Fed’s Neil Kashkari on Tuesday, and the beginning of the Jackson Hole Economic Symposium by Wednesday.

AUD/USD Price Analysis: Technical outlook

From a technical perspective, the AUD/USD pierced the 50-day EMA around 0.6916 but dropped, threatening to turn negative in the day, exacerbating a fall towards the five-month-old downslope trendline, previously a resistance area shifted support around the 0.6800 figure. A daily close below last week’s low at 0.6859 will pave the way for further losses.

AUD/USD

Overview
Today last price 0.6875
Today Daily Change 0.0007
Today Daily Change % 0.10
Today daily open 0.6869
 
Trends
Daily SMA20 0.6982
Daily SMA50 0.6919
Daily SMA100 0.7057
Daily SMA200 0.7142
 
Levels
Previous Daily High 0.6923
Previous Daily Low 0.6858
Previous Weekly High 0.7129
Previous Weekly Low 0.6858
Previous Monthly High 0.7033
Previous Monthly Low 0.668
Daily Fibonacci 38.2% 0.6883
Daily Fibonacci 61.8% 0.6898
Daily Pivot Point S1 0.6844
Daily Pivot Point S2 0.6818
Daily Pivot Point S3 0.6779
Daily Pivot Point R1 0.6908
Daily Pivot Point R2 0.6948
Daily Pivot Point R3 0.6973

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD eyes are on critical daily dynamic support

AUD/USD eyes are on critical daily dynamic support

AUD/USD bears eye a 50% mean reversion in the lower quarter of the 0.6700s. A break of the supporting trendline and subsequent test of  0.6640/50 could be a significant bearish development.

AUDUSD News

EUR/USD aims for 1.0550 despite upbeat US NFP data, Eurozone Retail Sales eyed

EUR/USD aims for 1.0550 despite upbeat US NFP data, Eurozone Retail Sales eyed

The EUR/USD pair is hovering around a fresh five-month high at 1.0545 in the early Asian session. The major currency pair is expected to extend its rally to near 1.0550 ahead amid an upbeat market mood.

EUR/USD News

Gold struggles around $1,800 ahead of ISM Services PMI data

Gold struggles around $1,800 ahead of ISM Services PMI data

Gold price is facing immense pressure in conquering the round-level resistance of $1,800.00 in the early Tokyo session. The precious metal is highly expected to display more gains ahead and may extend towards a fresh three-month high at $1,824.63.

Gold News

AVAX: Traders bet should be on Avalanche bulls triggering a 15% rally

AVAX: Traders bet should be on Avalanche bulls triggering a 15% rally

AVAX price has breached an inverse head-and-shoulders setup, hinting at a 13% upswing. AVAX price has broken out of a critical hurdle and pattern, signaling the start of a quick run-up. AVAX price action created an inverse head-and-shoulder setup.

Read more

The Yen, Payrolls, and the Oil price

The Yen, Payrolls, and the Oil price

US stocks wrapped their second straight week of gains, even if stocks slipped on Friday on the back of better-than-expected US Payrolls data.We have been amazed by the resilience in risky assets of late. This year has seen some incredible macro themes.

Read more

Forex MAJORS

Cryptocurrencies

Signatures