AUD/USD soars to 0.6718 amid catastrophic SVB bank collapse

The AUD/USD currency pair starts the week positively, trading at 0.6716 at the press time, up by 2.11% on the day.
Technical indicators, such as the daily 20-SMA and 50-SMA, suggest a potential bullish outlook for AUD/USD.
SVB banking catastrophe’s ripple effects and the consequences of the Fed’s rate hike decision support the pair.

Daily price movements:

AUD/USD currency pair opens the first day of a new week at 0.6575, with an intraday high of 0.6718 and a low of 0.6577. The pair trades at 0.6716 at the press time, up by 2.11% on the day, just below Monday’s ATH price.

The recent issues with Silicon Valley Bank (SVB) and Signature Bank have highlighted the vulnerable state of US banks, which has dampened expectations for additional interest rate increases from the Federal Reserve (Fed). As a result, Goldman Sachs now predicts a delay in rate hikes in March, and the Fed Fund futures (*) have reduced the likelihood of a 0.50% increase in the Fed rate.

Consequently, the US Dollar Index (DXY) has fallen to its lowest level in a month, trading near 103.60 at the press time.

* Fed Fund futures directly reflect collective marketplace insight regarding the future course of the Federal Reserve's monetary policy. (Source: CME Group’s website)

Key economic events:

Investors will be closely watching the US Consumer Price Index (CPI) (excluding Food and Energy) data for February, set to be released on Tuesday, to gain a better understanding of potential Federal Reserve (Fed) actions on the pace of interest rate increases, which could impact the strength of the US Dollar.

Additionally, both the Employment Change s.a. (Feb) and Unemployment Rate s.a. (Feb) released by the Australian Bureau of Statistics on Thursday will be the key economic events for AUD this week.

Technical view:

Technical indicators suggest a potential bullish outlook for the AUD/USD in the short term. The 20-day SMA and 50-day SMA are at 0.6777 and 0.6885, respectively, indicating a possible bullish trend. The daily 38.2% Fibonacci level is at 0.6593, with the 61.8% Fibonacci level at 0.6611. The RSI(14) is at 44.516, indicating potential bullish momentum. Resistance levels for AUD/USD are at 0.6623, 0.6670, and 0.6699, while support levels stand at 0.6547, 0.6517, and 0.6471. The daily pivot point is at 0.6594.

AUD/USD

Overview
Today last price	0.6715
Today Daily Change	0.0139
Today Daily Change %	2.11
Today daily open	0.6576

Trends
Daily SMA20	0.6777
Daily SMA50	0.6885
Daily SMA100	0.6765
Daily SMA200	0.6777

Levels
Previous Daily High	0.664
Previous Daily Low	0.6564
Previous Weekly High	0.677
Previous Weekly Low	0.6564
Previous Monthly High	0.7158
Previous Monthly Low	0.6698
Daily Fibonacci 38.2%	0.6593
Daily Fibonacci 61.8%	0.6611
Daily Pivot Point S1	0.6547
Daily Pivot Point S2	0.6517
Daily Pivot Point S3	0.6471
Daily Pivot Point R1	0.6623
Daily Pivot Point R2	0.667
Daily Pivot Point R3	0.6699

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