AUD / USD dips below 0.7500 on Powell’s remarks

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  • AUD / USD fell 40 pips in the last hour as Fed Chairman Powell speaks.
  • Market sentiment took a turn for the worse, witnessed by the fall in US stocks behind the back of the Fed’s Powell.
  • Powell Speech: High inflation is likely to last well into next year.

The AUD/USD it falls from the daily highs around 0.7511, losing 0.07% during the American session and is trading at 0.7454 at the time of writing. The pair lost 40 pips in the last hour when Federal Reserve Chairman Jerome Powell held a press conference.

On Friday, according to Reuters, President Powell said high inflation would likely last well into next year, but added that they still expect it to slide back toward its 2% target.

In addition, he added that “if we see persistent inflation, we would use our tools.” Regarding the labor market, he said that job growth could return to the highest levels seen last summer, but it could take longer than the Fed thought.

The Fed’s Powell-Driven Risk Averse

Meanwhile, market sentiment dimmed as the American session progressed. Major US equity markets are down 0.19-1.14%, at press time, while the US dollar index is down 0.07%, settling at 93.71, following in the footsteps of returns. of US Treasuries, with the 10-year yield dropping 0.5, is currently trading at 1.662%.

AUD / USD Price Forecast: Technical Outlook

The AUD / USD 1-hour chart shows that the pair briefly broke below Thursday’s low (0.7457), but at press time, the pair is at 0.7462, closing at Friday’s open, but below. 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 other hand, buyers will need to claim the 100 SMA. In that result, a challenge towards the daily pivot point at 0.7489, followed by 0.7500, is at stake.

Technical levels

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