AUD/USD Sees Rebound: Weak US Dollar and RBA’s Steady Stance Support Strength

August 23, 2024

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.

InvestMacro

Share
Published by
InvestMacro

Recent Posts

Countries spend huge sums on fossil fuel subsidies – why they’re so hard to eliminate

By Bruce Huber, University of Notre Dame  Fossil fuels are the leading driver of climate…

12 hours ago

Profit-taking is observed on stock indices. The data on wages in Australia haven’t met expectations

By JustMarkets At the end of Tuesday, the Dow Jones Index (US30) fell by 0.29%.…

14 hours ago

USD/JPY at a Three-Month Peak: No One Opposes the US Dollar

By RoboForex Analytical Department  The USD/JPY currency pair has climbed to a three-month high of…

14 hours ago

Can Chinese Tech earnings offer relief for Chinese stock indexes?

By ForexTime  CHINAH, CN50, HK50 falling on fears of heightened US-China trade tensions US president-elect Trump…

14 hours ago

Companies are buying up cheap carbon offsets − data suggest it’s more about greenwashing than helping the climate

By Sehoon Kim, University of Florida  Carbon offsets have become big business as more companies…

1 day ago

Bitcoin hits an all-time high above $88,000. Oil remains under pressure

By JustMarkets At the end of Monday, the Dow Jones Index (US30) rose by 0.69%.…

2 days ago

This website uses cookies.