AUD/USD tries to recover the 0.6400 level after bouncing from 0.6365

  • The aussie trims losses and returns to the 0.6400 area.
  • The expectations of interest rate hikes by the Fed are strengthening the dollar.
  • AUD/USD should break above the 0.6430 area to ease downside pressure.

The AUD trims losses in the American session on Monday and reaches the 0.6400 level, having found support at 0.6365 earlier today. On the daily chart, the pair remains slightly lower after entering the week on the wrong foot.

Hopes of a hard-line Fed hurt the Aussie

With attention on the various monetary policy decisions scheduled for this week, and with a particular focus on the US Federal Reserve, investors have remained cautious today. The Fed is expected to raise rates by 75 basis points for the fourth time in a row, which is supporting dollar demand.

Meanwhile, the unflattering Chinese Manufacturing PMI figures released today have reignited fears of a global economic slowdown. These numbers have sparked risk appetite during the Asian session, adding to the negative pressure on the risk-sensitive AUD.

In Australia, the RBA will announce its monetary policy decision on Tuesday. However, the event is not providing any relevant support to the Aussie. The bank was on the dovish side of the spectrum with a rate hike in early October and the market has priced in a slowing of the bank’s tightening path in the coming months.

AUD/USD should break above 0.6430 level to relieve bearish pressure – UOB

FX analysts at UOB see the pair gaining traction on the downside, pinpointing 0.6430 as a key level to the upside: “AUD dipped to a low of 0.6389. Bearish momentum has improved a bit and AUD is likely to lower today but clear break of 0.6370 unlikely.Resistance is at 0.6430 but only a break of 0.6460 would indicate current slight bearish pressure has eased.”

Technical levels to watch

AUD/USD

Overview
last price today 0.6394
Today I change daily -0.0018
Today’s daily variation in % -0.28
Daily opening today 0.6412
Trends
daily SMA20 0.6361
daily SMA50 0.6585
daily SMA100 0.6752
daily SMA200 0.699
levels
Previous daily high 0.648
Previous Daily Low 0.6389
Previous Weekly High 0.6522
Previous Weekly Low 0.6272
Previous Monthly High 0.6916
Previous Monthly Low 0.6363
Daily Fibonacci of 38.2% 0.6424
Daily Fibonacci of 61.8% 0.6445
Daily Pivot Point S1 0.6374
Daily Pivot Point S2 0.6336
Daily Pivot Point S3 0.6284
Daily Pivot Point R1 0.6465
Daily Pivot Point R2 0.6517
Daily Pivot Point R3 0.6555

Source: Fx Street

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