- AUD/USD prints a fresh three-week low at 0.7262.
- Downbeat market sentiment boosts the demand for US dollars.
- AUD/USD awaits the FOMC meeting to resume its direction.
During the European session, the AUD/USD reached a peak of 0.7321. However, as market sentiment deteriorated and American traders got to their desks, the AUD/USD dipped below 0.7300, pushing the pair to a three-week low at 0.7262. The AUD/USD is trading at 0.7284 at the time of writing, down 0.05% on the day.
US stocks fall while the greenback rises, underpinned by higher bond yields
In the New York session, US stock indexes are posting losses between 0.32% and 1.21%. The US Dollar Index is on the right foot, rising 0.41% on the day, currently at 93.24, underpinned by higher yields. The 10-year benchmark rate is at 1.368%, up to three basis points.
In the US economic docket, the Consumer Sentiment of the University of Michigan was released. The sentiment improved to 71.0 in September but remained below the 72.2 expected. The Delta strain has dampened the consumer sentiment, lowering the economic forecasts for the third quarter as economic activity slowed down.
The week ahead: FOMC Meeting and RBA Minutes
The Federal Open Market Committee will hold its September meeting. A lousy employment report and moderate inflationary pressures could delay bond taper announcement until November’s meeting. Contrarily, rising PPI and a stellar Retail Sales report could potentially prompt the Fed to take action at the following week’s meeting.
Meanwhile, the Reserve Bank of Australia will reveal the minutes of their last meeting on September 21.
AUD/USD Price Forecast: Technical outlook
The AUD/USD pair is trading well below its main daily moving averages in the daily chart, suggesting that sellers are in charge. The first support level would be 0.7200. In case of a break below the latter, the next demand area would be the 2021 low at 0.7100. A breach of that level could motivate sellers to push the price towards the psychological 0.7000.
On the other hand, buyers would need to push the price towards the 50-day moving average at 0.7342 to reclaim control.
The Relative Strength Index is at 41.18, heading lower, supporting the bearish bias.
KEY TECHNICAL LEVELS TO WATCH
|Today last price||0.7284|
|Today Daily Change||-0.0003|
|Today Daily Change %||-0.04|
|Today daily open||0.7287|
|Previous Daily High||0.7348|
|Previous Daily Low||0.7274|
|Previous Weekly High||0.7469|
|Previous Weekly Low||0.7345|
|Previous Monthly High||0.7427|
|Previous Monthly Low||0.7106|
|Daily Fibonacci 38.2%||0.7302|
|Daily Fibonacci 61.8%||0.7319|
|Daily Pivot Point S1||0.7258|
|Daily Pivot Point S2||0.7229|
|Daily Pivot Point S3||0.7184|
|Daily Pivot Point R1||0.7332|
|Daily Pivot Point R2||0.7377|
|Daily Pivot Point R3||0.7406|
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.