By RoboForex Analytical Department
AUD/USD is finding its footing, currently stabilising at around 0.6725, as the US dollar weakens further in anticipation of Fed Chair Jerome Powell’s speech at the Jackson Hole symposium.
The Australian dollar’s resilience is bolstered by the minutes from the Reserve Bank of Australia’s latest meeting, indicating that the central bank is not in a hurry to ease monetary policy despite a slowdown in inflation. The RBA remains cautious, projecting inflation to stay above its 2-3% target range until the end of 2025. This suggests that interest rates may remain steady for an extended period, providing a stable backdrop for the Australian dollar.
Recent data highlights robust performance in Australia’s private sector for August, particularly in services, while the contraction in manufacturing is easing. This paints a picture of an Australian economy that is adjusting well and could sustain its momentum without immediate monetary stimulus. Investors are watching closely for cues on future policy shifts, influencing forex forecasts.
Technical analysis of AUD/USD
Free Reports:
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
The AUD/USD pair recently peaked at 0.6760 but is now poised for a correction. The immediate focus is on a potential descent to 0.6684, marking the first significant support level. Upon reaching this target, a retest of 0.6725 from below may occur, defining the boundaries of a possible consolidation range. A break below this consolidation could initiate a further decline towards 0.6600, potentially extending to 0.6555. The MACD indicator supports a bearish outlook in the short term, with the signal line peaking and poised for a downward trajectory.
In the hourly frame, AUD/USD has retraced from a recent low of 0.6696 to 0.6725, indicating a corrective phase. The anticipated continuation of this downtrend could see the pair targeting 0.6686 shortly. If this support holds, a rebound to 0.6725 could follow. The Stochastic oscillator indicates an overbought condition, with the signal line expected to move downwards from 80 to 20, supporting the potential for further declines.
Disclaimer
Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
- Today is Good Friday — most financial markets will be closed Apr 18, 2025
- EUR/USD in Equilibrium: Quiet Trading Expected on Good Friday Apr 18, 2025
- The Bank of Canada kept the interest rate unchanged. In New Zealand, there is an increase in inflation Apr 17, 2025
- Pound Among the Winners Boosted by US Dollar Weakness and Rate Cut Prospects Apr 17, 2025
- China data beat expectations. Inflationary pressures in Canada continue to ease Apr 16, 2025
- Japanese Yen Surges as Weak US Dollar Fuels Momentum Apr 16, 2025
- Investors welcome tariff reliefs. Demand for safe assets is decreasing Apr 15, 2025
- CN50 waits on key China data Apr 15, 2025
- Gold Prices Remain Elevated Amid Concerns Over Trump’s Tariffs Apr 15, 2025
- Trump announces exemption of key tech goods from imposed tariffs Apr 14, 2025
