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AUD/USD soars to 0.6718 amid catastrophic SVB bankruptcy

  • The AUD/USD currency pair starts the week in the positive, trading at 0.6716 at press time, up 2.11% on the day.
  • Technical indicators such as the daily 20 SMA and 50 SMA suggest a possible bullish outlook for AUD/USD.
  • The effects of the SVB banking catastrophe and the fallout from the Fed’s rate hike decision support the pair.

Daily price evolution:

The pair AUD/USD opens the first day of a new week at 0.6575, with an intraday high of 0.6718 and a low of 0.6577. The pair is trading at 0.6716 at press time, up 2.11% on the day.

The recent problems of Silicon Valley Bank (SVB) and SignatureBank have highlighted the vulnerability of US banks, which has curbed expectations of further interest rate hikes by the Federal Reserve (Fed). Due, Goldman Sachs now expects a delay in rate hikes in March, and Fund futures of the fed have reduced the probability of a 0.50% Fed rate hike.

Consequently, the Dollar Index (DXY ) has fallen to its lowest level in a month, trading near 103.60 at press time.

Fed Fund Futures directly reflect the market’s collective view of the future course of Federal Reserve monetary policy. (Fountain: CME Group website)

Key economic events:

Investors will closely monitor the February Consumer Price Index (CPI) data in USA (excluding food and energy), which will be published on Tuesday, to better understand the possible actions of the Federal Reserve (Fed) on the pace of interest rate increases, which could affect the strength of the dollar.

In addition, on Thursday, the Australian Bureau of Statistics will publish the change in employment (February) and the unemployment rate (February), which will be the key economic data for the Australian dollar this week.

Technical perspective:

Technical indicators suggest a possible perspective AUD/USD bullish in the short term. The 20-day SMA and the 50-day SMA They’re in 0.6777 and 0.6885, respectively, indicating a possible uptrend. The daily 382% Fibonacci level is at 0.6593, and the 61.8% Fibonacci level at 0.6611. The RSI (14 ) is found in 44,516, indicating a possible bullish momentum. Resistance levels for the AUD/USD are at 0.6623, 0.6670 and 0.6699, while support levels are at 0.6547, 0.6517 and 0.6471. The daily pivot point stands at 0.6594.

AUD/USD

Overview
Last price today 0.6715
Today Change Daily 0.0139
today’s daily variation 2.11
today’s daily opening 0.6576
Trends
daily SMA20 0.6777
daily SMA50 0.6885
daily SMA100 0.6765
daily SMA200 0.6777
levels
previous daily high 0.664
previous daily low 0.6564
Previous Weekly High 0.677
previous weekly low 0.6564
Previous Monthly High 0.7158
Previous monthly minimum 0.6698
Fibonacci daily 38.2 0.6593
Fibonacci 61.8% daily 0.6611
Daily Pivot Point S1 0.6547
Daily Pivot Point S2 0.6517
Daily Pivot Point S3 0.6471
Daily Pivot Point R1 0.6623
Daily Pivot Point R2 0.667
Daily Pivot Point R3 0.6699

Source: Fx Street

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