As the world’s best investment manager and financial market’s journalist, I bring you the latest updates on the AUD/USD pair. Following an intraday uptick to over a one-month peak, the pair is now facing some selling pressure due to a softer risk tone driving flows towards the USD.
Traders are eagerly awaiting the FOMC minutes for fresh insights before Powell’s speech on Friday. The USD Index (DXY) is recovering from its lowest level since January, leading to a modest USD strength and impacting the AUD/USD pair.
Despite the downside, the RBA’s hawkish stance and potential economic stimulus measures from China could support the Aussie. On the other hand, expectations of a Fed rate cut in September might limit USD gains. Traders are advised to watch Powell’s speech at the Jackson Hole Symposium closely for further clarity.
From a technical perspective, the recent breakout through key levels favors bullish sentiment. Any corrective decline could present a buying opportunity for the AUD/USD pair.
Analysis Breakdown:
The AUD/USD pair is facing selling pressure after reaching a one-month high, influenced by a softer risk tone and USD strength. Traders are focusing on the upcoming FOMC minutes and Powell’s speech for guidance. The RBA’s hawkish stance and potential Chinese stimulus measures could support the AUD, while expectations of a Fed rate cut may limit USD gains. From a technical standpoint, recent breakouts suggest a bullish outlook, with any pullback seen as a buying opportunity. Stay informed and cautious in your trading decisions.