- AUD/USD trimmed Tuesday’s gains as USD bulls recovered some ground ahead of Jackson Hole.
- US Durable Goods Orders beat estimates, unlike US housing data, which shows a recession.
- AUD/USD Price Analysis: Ranged, awaiting the outcome of Jerome Powell’s Fed speech.
The AUD/USD remains defensive on Wednesday, paring some of its Tuesday gains, but remains above the 0.6900 figure amid bullish sentiment, capping AUD/USD’s decline. Factors such as mixed US economic data releases and investors’ anticipation of Jerome Powell’s speech at the Kansas City Fed symposium in Jackson Hole keep traders cautious.
AUD/USD hit a daily low around 0.6879, but mixed US economic data releases weighed on the greenback, causing the major to climb back above the 0.6900 figure, albeit without reach your opening price. At the time of writing, the AUD/USD is trading at 0.6900, down 0.37%.
US durable goods orders surprisingly rose in July, according to the US Commerce Department, with orders 0% mom, while excluding defense and aircraft were up 0.4%, above forecasts. estimates of 0.3%.
Meanwhile, US pending home sales fell for the sixth month in a row, plummeting -19.9% YoY, less than the -22% drop, while MoM, they were down -1%, vs. – 4% expected.
Meanwhile, the US Dollar Index, a gauge of the greenback’s value against a basket of pairs, extended gains by 0.26% to 108.800, a headwind for AUD/USD prices. US Treasury bond yields echo the direction of the dollar, led by the 10-year note rate, which stands at 3.113% and gains six and a half points.
Separately, late Tuesday, Minnesota Fed President Neil Kashkari is due to give remarks. Kashkari said that inflation is very high and it is the Fed’s job to curb it. He stressed the need to tighten monetary policy, adding that the Fed could only relax rate hikes when it sees convincing evidence that inflation is headed for 2%.
An absent Australian economic docket left traders biased towards US dollar dynamics. The Australian PMI had a softer tone compared to the S&P Global PMIs released during the week. However, this will not deter the Reserve Bank of Australia from raising rates. Money market futures expect at least a 35 basis point hike from the Reserve Bank of Australia at its next monetary policy meeting on September 6.
AUD/USD Price Analysis: Technical Outlook
The AUD/USD daily chart shows that the pair has bottomed out at the 0.6850-0.6930 area for the past four days, while the RSI has crossed below the 50 mid-line. , the pair could be primed for the results of Jackson Hole. Although the RSI crossed above its 7-day SMA, it shifted gears lower, which means that AUD/USD sellers might be gaining momentum. Therefore, a break below the bottom of the range will expose the 0.6800 figure, followed by the year low at 66.81. On the other hand, a break to the upside of the AUD/USD would bring into play the 20-day EMA at 0.6973, followed by the 0.7000 figure.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
