AUD/USD Price Forecast: Stuck between key SMAs, RSI turns bearish
AUD/USD Price Forecast: Holds losses below 0.7150 as descending wedge emerges
AUD/USD is continuing to shrug off the sharp curtailment in hawkish RBA pricing seen following Australia's weak April employment report. That's because the Aussie remains more closely tied to equities and volatility than domestic rate expectations right now, as shown in the correlation matrix below.
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AUD/USD Price Forecast: Picks up above 0.7120 after finding support in the 0.7100 area
Australian unemployment is already running above the RBA's forecast path, forcing traders to rethink whether this month's rat.
The confirmation of Kevin Warsh as the next Federal Reserve Chair added volatility, but today's trading is mainly driven by a sharp drop in the US Dollar.
The Australian dollar is attempting to stabilise ahead of today's labour force report, with traders weighing resilient domestic data, hawkish RBA minutes and shifting risk sentiment. While AUD/USD remains vulnerable to further downside if the US dollar strengthens, both AUD/USD and AUD/JPY have caught a bid into the jobs report as markets continue to price a high probability of another RBA rate hike in June.
Forex Market update: AUD/USD accelerates its upward momentum as global risk appetite returns and crude oil tumbles. With institutional focus shifting to the Australian jobs data and its implications for the Reserve Bank of Australia's policy path, explore our comprehensive technical breakdown of the Aussie's key structural levels.
The Australian Dollar weakened at the start of the week, with the AUD/USD exchange rate drifting back towards the 0.7150 level after failing to sustain recent gains. Crédit Agricole notes that softer Chinese economic data and rising global bond yields are creating a more difficult backdrop for the Australian currency.
After a quiet start to the day, market volatility has picked up in the afternoon, driven by (you guessed it) hopes of potential peace deal in Iran and the minutes from the most recent FOMC meeting.
On the hourly chart of AUD/USD at FXOpen, the pair struggled to clear 0.7220. The Aussie Dollar started a fresh decline below 0.7150 against the US Dollar.