The AUD/USD pair has regained positive traction on Friday, signaling a potential halt to its retracement slide from the 0.6760 area. Currently trading around 0.6725, the pair is up 0.30% for the day, benefitting from a weaker US Dollar and the divergent Fed-RBA policy outlook.
The dovish expectations surrounding the Federal Reserve have led to a decrease in the USD’s strength, with markets anticipating a rate cut in September. On the other hand, the Reserve Bank of Australia’s hawkish stance on interest rates has provided support to the Australian Dollar, further boosting the AUD/USD pair.
Investors are now eagerly awaiting Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium for insights into the future rate-cut path. From a technical perspective, the recent breakout and positive momentum indicate a bullish trend for the AUD/USD pair, with potential targets at 0.6750, 0.6800, and beyond.
Key Takeaways:
- The AUD/USD pair is benefiting from a weaker USD and RBA’s hawkish stance.
- Investors are waiting for Powell’s speech for further guidance on rate cuts.
- Technical indicators suggest a bullish trend for the pair in the near term.
Overall, the AUD/USD pair’s movement is influenced by central bank policies and market expectations, presenting opportunities for traders and investors to capitalize on the current market conditions.