- The AUD/USD pair hits a daily high of 0.6328 before falling due to rising tensions in the Middle East.
- The Dollar remains strong, with US stocks in the red and Treasury yields lower.
- The latest Australian employment report shows a easing of the labor market, in line with the RBA’s decision to keep rates at 4.10%.
The Australian Dollar (AUD) fell against the US Dollar (USD) on Friday in the mid-North American session, after the pair hit a daily high of 0.6328. Still, risk aversion amid rising tension in the Middle East weighs on the AUD/USD, which is trading at 0.6318, with a drop of 0.17%.
The AUD falls 0.17%, due to geopolitical risks and economic factors in the US.
The dollar remains strong as risk appetite keeps US equities in the red while Treasury yields decline. The conflict between Israel and Hamas is on the verge of escalation, while US Federal Reserve (Fed) officials dictate the direction of market sentiment.
On Friday, two Federal Reserve officials remained cautious about monetary policy, although both said inflation remains high and the Fed would need patience.
Atlanta Fed President Raphael Bostic stated the same, in addition to opening the door to a rate cut in 2024. Meanwhile, Cleveland Fed President Loretta Mester said the Fed is on o near the peak of the rate hike cycle, and added that the US central bank would be in demand for data at the next monetary policy meeting.
On the other hand, the latest Australian employment report showed that the labor market is easing, which was welcomed by the Reserve Bank of Australia (RBA), which left rates unchanged at the last meeting, in 4.10%, despite speculation about further tightening. Reserve Bank of Australia Governor Michele Bullock stated that if inflation persists above forecasts, the RBA will take response measures.
AUD/USD Price Analysis: Technical Outlook
The daily chart shows that the bearish trend is intact as the current week’s high aligns with the recent market structure of lower highs and lower lows, which could pave the way for additional losses. If AUD/USD falls below 0.6285, the pair could head lower and challenge the October 21 daily low at 0.6210 before testing the latest cycle low at 0.6169. On the contrary, if the pair holds above 0.6300, AUD buyers could remain hopeful of testing the 50-day moving average (DMA) at 0.6405. Once broken, the last cycle high could be exposed at 0.6501.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
