The AUD/USD retreats from daily highs around 0.7511, slides 0.07% during the New York session is trading at 0.7454 at the time of writing. The pair shed 40 pips in the last hour as Federal Reserve Chairman Jerome Powell hit the wires.

Powell speech: High inflation will likely last well into next year

On Friday, according to Reuters, Chairman Powell said that high inflation would likely last well into next year but added that they still expect it to move back down toward their 2% goal.

Furthermore, he added that “If we see persistent inflation, we would use our tools.” Concerning the labor market, he said that job growth could move back to higher levels witnessed the last summer, but it could take longer than the Fed thought.

Risk-off mood spurred by Fed’s Powell

Meanwhile, the market mood dampened as the New York session progressed. Major US equity markets lose between 0.19% and 1.14%, at press time, while the US Dollar Index edges lower 0.07%, sits at 93.71, following the US T-bond yields footsteps, with the 10-year yield dropping one a half basis point, currently at 1.662%.

AUD/USD Price Forecast: Technical outlook

The AUD/USD 1-hour chart depicts the pair briefly broke below Thursday low (0.7457), but at press time, the pair is at 0.7462, closing to the Friday’s open, but below the 100-simple moving average (SMA) at 0.7476, which could act as resistance. 

For AUD/USD sellers, they would need a sustained break below 0.7453, so they could challenge the confluence of the S1 pivot point and the 200-SMA around 0.7433.

On the flip side, buyers will need to reclaim the 100-SMA. In that outcome, a challenge towards the daily pivot point at 0.7489, followed by the  0.7500 figure, is on the cards.

AUD/USD KEY ADDITIONAL LEVELS TO WATCH

Overview
Today last price 0.7463
Today Daily Change -0.0004
Today Daily Change % -0.05
Today daily open 0.7467
 
Trends
Daily SMA20 0.7334
Daily SMA50 0.7316
Daily SMA100 0.7403
Daily SMA200 0.7565
 
Levels
Previous Daily High 0.7547
Previous Daily Low 0.7458
Previous Weekly High 0.7441
Previous Weekly Low 0.7291
Previous Monthly High 0.7478
Previous Monthly Low 0.717
Daily Fibonacci 38.2% 0.7492
Daily Fibonacci 61.8% 0.7513
Daily Pivot Point S1 0.7434
Daily Pivot Point S2 0.7401
Daily Pivot Point S3 0.7344
Daily Pivot Point R1 0.7523
Daily Pivot Point R2 0.758
Daily Pivot Point R3 0.7613

 

 

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