As the world’s leading investment manager, I bring you the latest update on the AUD/USD pair, which has experienced a drop to 0.6950 due to a USD recovery. Despite this setback, strong Australian PMIs are expected to limit the pair’s downside. The Reserve Bank of Australia’s hawkish views continue to support the Aussie against its peers, maintaining its position ahead of the Greenback.
Daily Market Analysis: Aussie’s Rally Slows Down Despite Strong PMIs
On Thursday, the AUD/USD is seeing a moderate decline after a recent rally. The monetary policy divergence between the Federal Reserve and the RBA is keeping the pair in focus, with the USD staging a recovery ahead of Jerome Powell’s speech at the Jackson Hole Symposium. Despite a mixed Australian economic outlook, strong August PMIs and the RBA’s hawkish stance are supporting the Aussie. The market sentiment suggests a potential depreciation of the USD following soft US labor market data and S&P PMIs.
Technical Analysis: AUD/USD Upsurge Persists with Firm Momentum
Technical analysis indicates that the AUD/USD pair is still on an upward trajectory, supported by a significant volume increase. The RSI and MACD indicators suggest a bullish sentiment, with the pair consolidating above the 0.6700 support level. The immediate resistance is around the recent high of 0.6760-0.6800.
Analysis Breakdown
In simple terms, the AUD/USD pair is currently facing a drop due to a USD recovery, but strong Australian PMIs are expected to limit the downside. The RBA’s hawkish views continue to support the Aussie, positioning it ahead of the Greenback. The market analysis indicates a potential depreciation of the USD, while technical indicators suggest a bullish sentiment for the AUD/USD pair. Overall, investors should keep an eye on upcoming data releases from both countries to guide their trading decisions.