Market news
11.04.2024, 06:26

AUD/USD Price Analysis: Finds temporary support near 0.6500

  • AUD/USD finds intermediate support neat 0.6500, more downside remains likely.
  • The US Dollar strengthens as market push back Fed rate cut expectations for June.
  • Australia’s consumer inflation expectations for next 12 months rose to 4.6%.

The AUD/USD pair finds an interim support near the psychological level of 0.6500 in Thursday’s early European session. The Aussie asset is expected to continue the downside move as faded market expectations for the Federal Reserve (Fed) beginning to reduce interest rates in the first half of this year has dampened appetite for risk-sensitive currencies.

S&P 500 futures have posted nominal gains in the Asian session. While the overall market sentiment is downbeat as investors shift focus to the September policy meeting when the Fed could pivot to rate cuts. Prospects for Fed early rate cuts have waned as the United States inflation for March turned out sticky. The US Dollar Index (DXY) jumps to 105.20, approaching five-month high at 106.00.

The US Bureau of Labor Statistics (BLS) reported on Monday that annual and monthly core Consumer Price Index (CPI), which strips of volatile food and energy prices, rose steadily by 3.8% and 0.4%, respectively, suggested that rate cuts are not appropriate currently.

Meanwhile, expectations for the Reserve Bank of Australia (RBA) reducing interest rates sooner have eased due to a significant increase in consumer inflation expectations. The Melbourne Institute reported that inflation expectations for next 12 months accelerated to 4.6% from prior reading of 4.3%.

AUD/USD witnesses an intense sell-off after failing to sustain the breakout of the Descending Triangle chart pattern formed on a daily timeframe. The Aussie asset is declining towards the horizontal support of the aforementioned pattern plotted from March 5 low at 0.6477.

The Aussie asset falls below the 20-day Exponential Moving Average (EMA) trading near 0.6550, suggesting weak demand for the Australian Dollar.

The 14-period Relative Strength Index (RSI) falls sharply after failing to climb above 60.00, indicating limited upside.

Investors might build fresh shorts if the asset drops below March 28 low at 0.6485. Profits on shorts would be booked near February 13 low around 0.6440 and the round-level support of 0.6400.

In an alternate scenario, fresh upside would appear if the asset breaks above March 21 high at 0.6635. This will drive the asset toward March 8 high at 0.6667, followed by the round-level resistance of 0.6700.

AUD/USD daily chart

AUD/USD

Overview
Today last price 0.6521
Today Daily Change 0.0009
Today Daily Change % 0.14
Today daily open 0.6512
 
Trends
Daily SMA20 0.6551
Daily SMA50 0.6544
Daily SMA100 0.6603
Daily SMA200 0.6544
 
Levels
Previous Daily High 0.6631
Previous Daily Low 0.6499
Previous Weekly High 0.6619
Previous Weekly Low 0.6481
Previous Monthly High 0.6667
Previous Monthly Low 0.6478
Daily Fibonacci 38.2% 0.6549
Daily Fibonacci 61.8% 0.6581
Daily Pivot Point S1 0.6464
Daily Pivot Point S2 0.6415
Daily Pivot Point S3 0.6331
Daily Pivot Point R1 0.6596
Daily Pivot Point R2 0.668
Daily Pivot Point R3 0.6729

 

 

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location