Beyond the numbers, investors should consider FOMC member speeches. Insights into the economic outlook, inflation, the labor market, and the Fed rate path could move the dial.
Short-Term Forecast:
The near-term trend for the AUD/USD will hinge on potential stimulus measures from Beijing, Aussie labor market data, and US economic indicators. Fresh stimulus measures from Beijing and better-than-expected labor market data could boost Aussie dollar demand. However, upbeat US retail sales and labor market data may drive US dollar demand, pressuring the AUD/USD lower.
Investors should remain vigilant. Economic indicators from Australia and the US will be crucial for the AUD/USD pairing. Stay informed with our latest updates and insights to navigate the Forex markets effectively.
AUD/USD Price Action
Daily Chart
Following last week’s pullback, the AUD/USD hovers below the 50-day EMA while holding above the 200-day EMA. The indicators send bearish near-term but bullish longer-term price signals.
An Aussie dollar break out from the 50-day EMA could signal a move toward the $0.68006 resistance level. Furthermore, a break above the $0.68006 resistance level may give the bulls a run at $0.68500.
Economic data from Australia, central bank chatter, the US economic calendar, and stimulus-related news from Beijing require consideration.
Conversely, an AUD/USD drop below the $0.67050 support level could signal a fall toward the 200-day EMA.
With a 14-period Daily RSI reading of 45.90, the AUD/USD may fall to the 200-day EMA before entering oversold territory.
