• AUD/USD is likely to drop near 0.6400 after demolishing a less-confident pullback.
  • A lower-than-expected decline in the demand for US Consumer Durables supported the DXY.
  • The roadmap of hiking interest rates for the remaining 2022 will be keenly watched.

The AUD/USD pair displays a less-confident pullback after dropping to a fresh two-year low at 0.6414. The asset is not witnessing any signs of exhaustion in the downside bias and the pullback move will be crushed sooner by the market participants. The pair is expected to decline further towards the round-level support of 0.6400 ahead of the speech from Federal Reserve (Fed) chair Jerome Powell.

Fed Powell’s speech is expected to remain extremely hawkish to fulfill its primary objective of crushing the price rise index and retrieving it to the desired level of 2%. What’s interesting will be the guidance on interest rates for the remaining 2022. The Fed sees interest rates top at 4.6% from 3-3.25%. More significant rate hike announcements in the remaining year will decline the margin for achieving the targeted rates, and the world economy will see a slowdown in the pace of rate hikes later.

The US dollar index (DXY) is performing firmer on a lower-than-expected decline in the US Durable Goods Orders data. The decline in demand for Durable Goods landed at 0.2%, lower than the expectations of a drop of 0.4%. As the Fed is sticking to its path of hiking interest rates, a decline in demand for consumer durables cannot be ruled out. So a lower-than-expected reading cheered the DXY investors.

On the Australian front, investors are looking forward to the monthly Retail Sales data, which is expected to improve by 0.4% against the prior release of 1.3%. It seems that the retail demand is still increasing but is accelerating at a decreasing rate. A higher-than-expected Retail Demand will support the aussie bulls.

AUD/USD

Overview
Today last price 0.6433
Today Daily Change -0.0022
Today Daily Change % -0.34
Today daily open 0.6455
 
Trends
Daily SMA20 0.6733
Daily SMA50 0.6869
Daily SMA100 0.6922
Daily SMA200 0.7091
 
Levels
Previous Daily High 0.6538
Previous Daily Low 0.6438
Previous Weekly High 0.6748
Previous Weekly Low 0.6512
Previous Monthly High 0.7137
Previous Monthly Low 0.6835
Daily Fibonacci 38.2% 0.6476
Daily Fibonacci 61.8% 0.65
Daily Pivot Point S1 0.6416
Daily Pivot Point S2 0.6377
Daily Pivot Point S3 0.6316
Daily Pivot Point R1 0.6516
Daily Pivot Point R2 0.6577
Daily Pivot Point R3 0.6616

 

 

 

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