AUD/USD finds fragile footing amid mixed economic signals, USD softness

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  • AUD/USD experiences a modest lift from a daily low of 0.6287 amidst a generally softer USD.
  • The Reserve Bank of Australia maintains a dovish posture, holding rates steady at 4.10%, while recent Australian Services PMI outperforms expectations.
  • Upcoming economic indicators, including the Australian Balance of Trade and US Initial Jobless Claims, to provide further directional cues for the pair.

The Australian Dollar (AUD) gained some momentum against the Greenback (USD) on Wednesday after printing a daily low of 0.6287, though the former was bolstered by overall US Dollar softness across the board. As the Asian session begins, the AUD/USD trades at 0.6234, almost flat.

Australian Dollar cautiously rebounds from weekly lows, navigating through the juxtaposition of a dovish RBA stance and a slightly weakening US Dollar

Wall Street finished Wednesday’s session in an upbeat mood, which usually carries on to the next day's Asian session. Summarizing economic data in the United States (US) showed us the labor market is loosening a bit following September’s ADP Employment Change report, with hirings rising 89K, below estimates of 150K, and last month’s 180K. In the meantime, business activity reported by the ISM witnessed the services index easing to 53.6, as foreseen but below August’s 54.5.

On the Australian front, the latest monetary policy reunion of the Reserve Bank of Australia (RBA) on October 3 was perceived as a dovish one, with the central bank holding rates at 4.10%. Although the RBA stated the board is determined to return inflation to its target, it was mainly ignored by AUD/USD traders, sending the pair toward its weekly lows of around 0.6280s.

On Wednesday, the Aussie’s economic calendar revealed the September Judo Bank Services PMI jumping above estimates of 50.5 to 51.8, crushing August’s figures. Today, the Balance of Trade is expected to print a surplus of A$8.725B. The US agenda will feature Initial Jobless Claims, the Balance of Trade, and Fed speakers.

AUD/USD Price Analysis: Technical outlook

The daily chart portrays the pair as neutral to downward biased, even though the AUD/USD formed a two-candlestick pattern called a ‘bullish-harami.’ To confirm its validity, the pair should rally past the October 3 high of 0.6367, which would put into play the 0.6400 mark. On the other hand, the path of least resistance suggests the pair might extend its losses once the weekly low of 0.6285 is breached, eyeing the November 22 low of 0.6272, followed by the October 21 and 13 lows, each a 0.610 and 0.6164, respectively.

AUD/USD

Overview
Today last price 0.6326
Today Daily Change 0.0024
Today Daily Change % 0.38
Today daily open 0.6302
 
Trends
Daily SMA20 0.6409
Daily SMA50 0.6468
Daily SMA100 0.6582
Daily SMA200 0.6686
 
Levels
Previous Daily High 0.6368
Previous Daily Low 0.6286
Previous Weekly High 0.6501
Previous Weekly Low 0.6332
Previous Monthly High 0.6522
Previous Monthly Low 0.6332
Daily Fibonacci 38.2% 0.6317
Daily Fibonacci 61.8% 0.6336
Daily Pivot Point S1 0.6269
Daily Pivot Point S2 0.6236
Daily Pivot Point S3 0.6187
Daily Pivot Point R1 0.6351
Daily Pivot Point R2 0.6401
Daily Pivot Point R3 0.6434

 

 

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