AUD/USD rebounds from 0.6300, Dollar suffers sharp correction ahead of Powell speech

  • AUD/USD finds support near 0.6300 amid US Dollar correction.
  • Investors don’t seem to agree with the Fed’s Powell’s guidance on interest rates.
  • The Australian dollar faced selling pressure as labor demand remained weak in September.

The pair AUD/USD discovers buyer interest near the round level support of 0.6300. The pair bounces as the US Dollar faces a sell-off ahead of Federal Reserve (Fed) Chairman Jerome Powell’s speech. The Dollar Index (DXY) falls sharply to near 106.30.

Investors appear undecided whether the Fed will opt for a hawkish stance due to strong labor market conditions, strong consumer spending and a revival of factory activities or whether it will support neutral interest rates due to rising inflation. US Treasury yields. US 10-year Treasury yields have risen to around 4.94%.

The S&P 500 struggles to maintain the gains generated at the opening, as the general market sentiment is one of caution due to the escalation of the conflicts between Israel and Palestine. On Wednesday, US President Joe Biden said “loud and clear” that the US supports Israel and is willing to provide whatever the nation needs to defend itself from the Hamas army.

For its part, the Australian Dollar came under pressure early on Thursday due to mixed employment data. The hiring of only 6.7 thousand people in September indicates that labor demand was weak. Economists forecast new additions of 20,000, which were significantly lower than the August reading of 63,300. For its part, the unemployment rate fell to 3.6%, compared to estimates and the previous publication of 3.7%.

Looking ahead, the Australian Dollar will dance to the tune of the People’s Bank of China (PBoC) interest rate decision, which will be announced on Friday. As a representative of the Chinese economy, a dovish decision would strengthen the AUD.

AUD/USD

Overview
Latest price today 0.6322
Daily change today -0.0014
Today’s daily variation -0.22
Today’s daily opening 0.6336
Trends
daily SMA20 0.6377
daily SMA50 0.6413
SMA100 daily 0.6558
SMA200 daily 0.666
Levels
Previous daily high 0.6393
Previous daily low 0.6328
Previous weekly high 0.6445
Previous weekly low 0.6286
Previous Monthly High 0.6522
Previous monthly low 0.6332
Daily Fibonacci 38.2 0.6353
Fibonacci 61.8% daily 0.6368
Daily Pivot Point S1 0.6312
Daily Pivot Point S2 0.6287
Daily Pivot Point S3 0.6247
Daily Pivot Point R1 0.6377
Daily Pivot Point R2 0.6418
Daily Pivot Point R3 0.6442

Source: Fx Street

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