- 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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