Aud Strong Against Usd

last updated on

Aud Strong Against Usd

Aud Strong Against Us Dollar On Hawkish Rba

1% upside was seen in the AUD/USD pair, lifting to around the 0.6790 level on Friday. Eventually, the prices stabilized near the 0.6725 handle.

The recent upside in the AUD/USD comes amid the comments from Fed Powell. The speech from Powell hinted at the Fed's readiness to lower the policy rate starting from September.

Rba Stays Cautious About Policy

Meanwhile, the Reserve Bank of Australia (RBA) has adopted a more cautious stance as inflation is now on the rise once again.

This comes at a time when the Australian economy is experiencing difficult times. However, the RBA seems to consider inflation a bigger problem than economic progress.

The 0.6790 was a medium-term high for the AUD/USD, as it was only seen during January 2024. For now, the RSI is near 67 which means the AUD/USD is about to enter the overbought territory. Similarly, the MACD shows that the green bars are rising which is a sign that the bullish momentum is still strong.

As for the volume, it also remains high which means buyers are still interested in the AUD/USD pair. So if the bulls continue to push higher, the next resistance level that will come into focus will be 0.6800 and then 0.6850. As for the support levels, the most relevant ones are 0.6700 and then 0.6650.

While the Fed comments have pushed the AUD/USD higher, the RBA meeting minutes were also a potent catalyst. The RBA minutes have revealed that the central bank is reluctant to ease the monetary policy.

RBA is aiming for an inflation range between 2 to 3% by the 2025 end. So, we can expect higher rates in Australia until the end of 2025.

Amidst all of this, China has introduced new measures to support its real estate sector. However, it will not have much of an impact on the AUD as the debt issue remains a major problem.

Trending Stories